Discover Financial Services Shows Strong Growth Amid Market Trends
Overview of Discover Financial Services
Riverwoods, Illinois-based Discover Financial Services (DFS) is a leading financial services company known for its direct banking and payment offerings. With a market capitalization of $42.5 billion, it is a significant player in the financial industry, providing a variety of products such as credit cards, personal loans, and student loans.
Stock Performance and Comparisons
Currently, DFS shares are trading 8% below their 52-week high of $188.26, reached on November 6. In the past three months, the stock has increased by 21.5%, outperforming the Financials Select Sector SPDR Fund’s (XLF) rise of 6.2% during the same period.
Looking at a larger perspective, DFS has risen by 54.1% year-to-date, and over the past year, shares have appreciated by 60.9%. In contrast, the XLF has gained 29% in 2024 and 31.5% over the last twelve months.
Technical Indicators
To validate its positive momentum, DFS has been trading below its 50-day moving average since early November while remaining above the 200-day moving average since late October.
Strong Q3 Earnings Report
On October 16, DFS reported its Q3 earnings, causing the stock to increase nearly 2% in the following session. The company’s earnings per share (EPS) came in at $3.69, exceeding Wall Street’s predictions. Additionally, adjusted revenue of $4.5 billion surpassed market expectations, fueling a price surge.
Competitor Comparison and Market Outlook
In comparison, rival American Express Company (AXP) has shown slightly better performance, with a 65.3% gain over the past year.
Considering DFS’s recent performance, analysts maintain a moderately optimistic outlook, giving the stock a consensus rating of “Moderate Buy” from 14 analysts. The average price target stands at $174.54, indicating a slight premium over current levels.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are for informational purposes only. For more details, please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
