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

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 lower today making it today's featured Financial Services laggard. The industry as a whole was unchanged today. By the end of trading, Discover Financial Services fell $0.59 (-1.1%) to $54.26 on light volume. Throughout the day, 1,629,402 shares of Discover Financial Services exchanged hands as compared to its average daily volume of 2,884,200 shares. The stock ranged in price between $54.11-$54.96 after having opened the day at $54.75 as compared to the previous trading day's close of $54.85. Other companies within the Financial Services industry that declined today were: PowerShares DB Base Metals Double Short ETN ( BOM), down 17.9%, Direxion Daily Natural Gas Related Bear 3X ( GASX), down 4.4%, PHH Corporation ( PHH), down 4.4% and PowerShares DB Commodity Double Long ETN ( DYY), down 4.3%.

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 $26.1 billion and is part of the financial sector. The company has a P/E ratio of 12.3, below the S&P 500 P/E ratio of 17.7. Shares are down 2.0% year to date as of the close of trading on Wednesday. Currently there are 12 analysts that rate Discover Financial Services a buy, no analysts rate it a sell, and 7 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 positive front, Value Line ( VALU), up 10.2%, iPath Global Carbon ETN ( GRN), up 10.0%, iPath Dow Jones-UBS Platinum Total Return S ( PGM), up 7.8% and PowerShares DB Commodity Short ETN ( DDP), up 7.5% , were all gainers within the financial services industry with Charles Schwab ( SCHW) being today's featured financial services industry leader.

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).

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

If you liked this article you might like

From Catalogs to Catastrophe: A Sears Timeline

From Catalogs to Catastrophe: A Sears Timeline

Bitcoin Drops as Banks Cut Credit Card Support for Cryptocurrencies

Bitcoin Drops as Banks Cut Credit Card Support for Cryptocurrencies

Closing Bell: LIVE MARKETS BLOG

Closing Bell: LIVE MARKETS BLOG

JPMorgan, Wells Fargo Get Fat Profits by Skimping on Savers as Rates Rise

JPMorgan, Wells Fargo Get Fat Profits by Skimping on Savers as Rates Rise

There Is Good and a Lot of Bad in General Electric Earnings

There Is Good and a Lot of Bad in General Electric Earnings