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 $199.0 million.
  • DFS is down 3.6% today from today's close.

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-Ideas

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 2.4%. DFS has a PE ratio of 1. Currently there are 16 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 3.3 million shares per day over the past 30 days. Discover Financial Services has a market cap of $20.3 billion and is part of the financial sector and financial services industry. The stock has a beta of 1.31 and a short float of 1.5% with 1.58 days to cover. Shares are down 9.8% year-to-date as of the close of trading on Tuesday.

TheStreet Recommends

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Discover Financial Services as a

hold

. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk and a generally disappointing performance in the stock itself.

Highlights from the ratings report include:

  • DFS's revenue growth has slightly outpaced the industry average of 5.8%. 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% significantly outperformed against the industry average.
  • 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 ($5.29 versus $4.90).
  • DFS has underperformed the S&P 500 Index, declining 20.42% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
  • Although DFS's debt-to-equity ratio of 2.11 is very high, it is currently less than that of the industry average.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.