On Thursday, June 16th, shares of Discover Financial Services (DFS) opened at $117.14. The company has a market capitalization of $29.75 billion with a P/E ratio of 7.89, a PEG ratio of 1.55, and a beta of 1.43. Analysts have been bullish on DFS with recent price target increases from Stephens, Royal Bank of Canada, and Citigroup.
Despite missing consensus estimates for quarterly earnings in April, DFS still posted strong results with revenue up 29.3% year-over-year to $3.75 billion and net margin at 24.65%. Additionally, institutional investors such as EP Wealth Advisors and Brandywine Global Investment Management have added positions in the stock while Toroso Investments has boosted their holdings by almost 44%.
DFS has a quick ratio and current ratio both at 1.14 and a debt-to-equity ratio of 1.37 which indicates that the company has sufficient liquidity to cover short-term obligations while carrying moderate debt levels relative to equity.
The average target price for DFS is currently at $119.67 according to data from Bloomberg with ten analysts rating the stock as ‘hold’ and four rating it as ‘buy’. With strong financials and investor confidence, Discover Financial Services appears to be well-positioned for long-term growth in the financial services industry.
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Discover Financial Services Poised for Strong 2023-2024 Results: Zacks Research Analysis
[stock_market_widget type=”chart” template=”basic” color=”#3946CE” assets=”DFS” range=”1mo” interval=”1d” axes=”true” cursor=”true” range_selector=”true” api=”yf”]Discover Financial Services Set to Achieve Strong 2023-2024 Results, According to Zacks Research Analysis
As of June 16, 2023, Zacks Research’s analyst D. Chatterjee predicted that Discover Financial Services (NYSE:DFS) would achieve spectacular earnings per share (EPS) figures in the upcoming quarter and the years after that. According to their research note issued on Monday, June 12th, DFS is set to post EPS of $3.50 for Q2-2023.
Furthermore, Chatterjee’s findings stated that the consensus estimate for Discover Financial Services’ full-year earnings was $13.39 per share and it will subsequently experience positive results within the succeeding periods. The company’s earnings for Q4 2023 are valued at $3.11 EPS while FY-2023 earnings scores a high with $13.36 EPS; this indicates sustained growth and an increase in its current balancing act.
Simultaneously, numerous hedge funds have added or reduced their interests with DFS recently as well as endeavors by institutional Investors such as EP Wealth Advisors LLC acquiring a new stake of approximately $10,595,000 worth shares of DFS, Brandywine Global Investment Management LLC lifting its holdings in shares of Discover Financial Services by 1.6% during Q1 while Toroso Investments LLC increased their strategies up by almost 44%. Institutional investors and hedge funds own around 81.74% of the company’s stock.
Despite these fluctuations in ownership stakes amongst shareholders and other institutional investors’ activities during this period in focusing on acquiring valuable positions within DFS’ stocks; recent developments started by DFS also played a role in highlighting potential growths underneath their financial records.
DFS announced on Wednesday, April 19th – a repurchase program initiated by its Board of Directors “permitting” them to splurge $2.70 billion back into acquiring more shares through an open market purchase. This program indicates a belief in its stock’s undervaluation, which kindles investors’ interest and further strengthens their market position.
Recently, Discover Financial Services declared a quarterly dividend on Thursday June 8th. Shareholders of record on May 25th were paid a handsome sum of $0.70 per share the following day – this represents an increase from DFS’s previous quarterly dividend of $0.60 indicating strength and increased equity amongst investors especially as the ex-dividend date was wednesday, May 24th. Its annualized basis increased to $2.80 while yield up to 2.39%.
Zacks Research’s results combined with the positive developments initiated by DFS suggests potential growth expected in DFS’s future financial records throughout 2023-2024: A glimpse into the bright future awaits them.
