Discover Financial Services (DFS): Today's Featured Financial Services Winner

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.

Discover Financial Services ( DFS) pushed the Financial Services industry higher today making it today's featured financial services winner. The industry as a whole was unchanged today. By the end of trading, Discover Financial Services rose $0.70 (1.3%) to $53.47 on average volume. Throughout the day, 2,745,805 shares of Discover Financial Services exchanged hands as compared to its average daily volume of 3,090,300 shares. The stock ranged in a price between $52.88-$53.58 after having opened the day at $52.91 as compared to the previous trading day's close of $52.77. Other companies within the Financial Services industry that increased today were: Value Line ( VALU), up 10.0%, Direxion Daily Gold Miners Bull 3X Shares ( NUGT), up 7.0%, Consumer Portfolio Services ( CPSS), up 6.4% and Sorrento Therapeutics ( SRNE), up 6.2%.

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. Discover Financial Services has a market cap of $24.8 billion and is part of the financial sector. The company has a P/E ratio of 11.6, below the S&P 500 P/E ratio of 17.7. Shares are up 36.9% year to date as of the close of trading on Friday. Currently there are 14 analysts that rate Discover Financial Services a buy, no analysts rate it a sell, and 5 rate it a hold.

TheStreet Ratings rates Discover Financial Services as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, expanding profit margins, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the negative front, Direxion Daily Gold Miners Bear 3X Shares ( DUST), down 7.0%, First Marblehead Corporation ( FMD), down 6.3%, NewStar Financial ( NEWS), down 5.7% and ELEMENTS S&P CTI ETN ( LSC), down 4.9%.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the financial services industry could consider Financial Select Sector SPDR ( XLF) while those bearish on the financial services industry could consider Proshares Short Financials ( SEF).

3x UPSIDE POTENTIAL: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
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