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
) 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 $163.1 million.
- DFS has traded 3.3 million shares today.
- DFS is trading at a new lifetime high.
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More details on DFS:
Discover Financial Services, a bank holding company, provides direct banking and payment services in the United States. It operates in two segments, Direct Banking and Payment Services. The stock currently has a dividend yield of 1.6%. DFS has a PE ratio of 11.3. Currently there are 13 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 3.9 million shares per day over the past 30 days. Discover Financial Services has a market cap of $24.8 billion and is part of the financial sector and financial services industry. The stock has a beta of 0.87 and a short float of 0.8% with 1.22 days to cover. Shares are up 31.3% year to date as of the close of trading on Monday.
rates Discover Financial Services as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, growth in earnings per share, expanding profit margins and good cash flow from operations. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.
Highlights from the ratings report include:
- DFS's revenue growth has slightly outpaced the industry average of 2.6%. Since the same quarter one year prior, revenues slightly increased by 4.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
- 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 43.81% 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 12.7% 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 $4.46 versus $4.06 in the prior year. This year, the market expects an improvement in earnings ($4.81 versus $4.46).
- The gross profit margin for DISCOVER FINANCIAL SVCS INC is rather high; currently it is at 53.14%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 29.38% significantly outperformed against the industry average.
- Net operating cash flow has increased to $1,492.00 million or 47.62% when compared to the same quarter last year. In addition, DISCOVER FINANCIAL SVCS INC has also vastly surpassed the industry average cash flow growth rate of -93.11%.
- You can view the full Discover Financial Services Ratings Report.