Today's Post-Market Laggard Is Discover Financial Services (DFS)

Trade-Ideas LLC identified Discover Financial Services (DFS) as a post-market laggard candidate
By TheStreet Wire ,

Trade-Ideas LLC identified

Discover Financial Services

(

DFS

) as a post-market laggard 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 $148.5 million.
  • DFS is down 3.3% today from today's close.

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More details on DFS:

Discover Financial Services operates as a direct banking and payment services company in the United States. It operates in two segments, Direct Banking and Payment Services. The stock currently has a dividend yield of 2%. DFS has a PE ratio of 12. Currently there are 14 analysts that rate Discover Financial Services a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Discover Financial Services has been 3.2 million shares per day over the past 30 days. Discover Financial Services has a market cap of $24.3 billion and is part of the financial sector and financial services industry. The stock has a beta of 1.29 and a short float of 1.4% with 2.28 days to cover. Shares are down 13.2% year-to-date as of the close of trading on Wednesday.

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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 revenue growth, expanding profit margins, good cash flow from operations, growth in earnings per share and attractive valuation levels. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

Highlights from the ratings report include:

  • DFS's revenue growth has slightly outpaced the industry average of 4.1%. Since the same quarter one year prior, revenues slightly increased by 1.3%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The gross profit margin for DISCOVER FINANCIAL SVCS INC is rather high; currently it is at 50.54%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 24.37% is above that of the industry average.
  • Net operating cash flow has slightly increased to $1,147.00 million or 8.72% when compared to the same quarter last year. Despite an increase in cash flow, DISCOVER FINANCIAL SVCS INC's average is still marginally south of the industry average growth rate of 16.09%.
  • DISCOVER FINANCIAL SVCS INC reported flat earnings per share in the most recent quarter. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, DISCOVER FINANCIAL SVCS INC reported lower earnings of $4.90 versus $4.96 in the prior year. This year, the market expects an improvement in earnings ($5.30 versus $4.90).

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