New Lifetime High Reached: Discover Financial Services (DFS)
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.Trade-Ideas LLC identified Discover Financial Services (DFS) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Discover Financial Services as such a stock due to the following factors:
- DFS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $168.7 million.
- DFS has traded 4,271 shares today.
- DFS is trading at a new lifetime high.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in DFS with the Ticky from Trade-Ideas. See the FREE profile for DFS NOW at Trade-IdeasMore details on DFS: Discover Financial Services, a bank holding company, provides a range of financial products and services in the United States. The company operates in two segments, Direct Banking and Payment Services. The stock currently has a dividend yield of 1.4%. DFS has a PE ratio of 11.5. Currently there are 14 analysts that rate Discover Financial Services a buy, no analysts rate it a sell, and 5 rate it a hold.The average volume for Discover Financial Services has been 3.1 million shares per day over the past 30 days. Discover Financial Services has a market cap of $26.9 billion and is part of the financial sector and financial services industry. Shares are up 2.2% year-to-date as of the close of trading on Wednesday.STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.TheStreetRatings.com Analysis:TheStreet Quant Ratings rates Discover Financial Services as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, revenue growth, expanding profit margins and good cash flow from operations. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.Highlights from the ratings report include:
- Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 33.02% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, DFS should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- DISCOVER FINANCIAL SVCS INC has improved earnings per share by 14.9% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, DISCOVER FINANCIAL SVCS INC increased its bottom line by earning $4.96 versus $4.46 in the prior year. This year, the market expects an improvement in earnings ($5.18 versus $4.96).
- Despite its growing revenue, the company underperformed as compared with the industry average of 4.5%. Since the same quarter one year prior, revenues slightly increased by 4.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
- 44.92% is the gross profit margin for DISCOVER FINANCIAL SVCS INC which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 25.06% significantly outperformed against the industry average.
- Net operating cash flow has increased to $982.00 million or 11.36% when compared to the same quarter last year. Despite an increase in cash flow, DISCOVER FINANCIAL SVCS INC's cash flow growth rate is still lower than the industry average growth rate of 47.63%.
- You can view the full Discover Financial Services Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV