For its second fiscal quarter (ending June 30), Discover Financial Services (NYSE: DFS) has reported a 71% increase in E.P.S. from $3.54 a year ago to $6.06 in the current quarter. This result exceeded the consensus estimate of $3.00 by $3.06. For the latest four quarters through June 30, E.P.S. were $11.30 versus $14.40 for the same period a year ago — a decline of -22%.
Recent Price Action
On 7/17/24, Discover Financial Services (NYSE: DFS) stock declined slightly by -0.3%, closing at $141.41. Moreover, this decline was accompanied by unusually high trading volume at 177% of normal. Relative to the market the stock has been exceptionally strong over the last nine months and has risen 8.8% during the last week.
Current PriceTarget Research Rating
DFS’ future returns on capital are forecasted to exceed the cost of capital. Accordingly, the company is expected to continue to be a major Value Builder.
Discover Financial Services has a current Value Trend Rating of A (Highest Rating). The Value Trend Rating reflects consistent signals from PTR’s two proprietary measures of a stock’s attractiveness. Discover Financial Services has a slightly positive Appreciation Score of 69 and a good Power Rating of 81, resulting in the Highest Value Trend Rating.
Rating Review
In light of this encouraging new earnings information we are reviewing our current Overall Rating of A. This review will be completed in the next several days.
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