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Discover (DFS) Outpaces Stock Market Gains: What You Should Know
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Discover (DFS - Free Report) closed at $106.38 in the latest trading session, marking a +1.91% move from the prior day. The stock outpaced the S&P 500's daily gain of 1.41%. At the same time, the Dow added 0.98%, and the tech-heavy Nasdaq lost 0.02%.
Prior to today's trading, shares of the credit card issuer and lender had gained 4.09% over the past month. This has traded in line with the Finance sector and lagged the S&P 500's gain of 4.68% in that time.
Investors will be hoping for strength from Discover as it approaches its next earnings release. The company is expected to report EPS of $3.73, up 5.37% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $3.33 billion, up 19.85% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $15.32 per share and revenue of $12.92 billion, which would represent changes of -14.08% and +6.91%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Discover. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.33% lower. Discover is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Discover currently has a Forward P/E ratio of 6.81. For comparison, its industry has an average Forward P/E of 5.66, which means Discover is trading at a premium to the group.
Investors should also note that DFS has a PEG ratio of 0.23 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Financial - Consumer Loans industry currently had an average PEG ratio of 0.28 as of yesterday's close.
The Financial - Consumer Loans industry is part of the Finance sector. This group has a Zacks Industry Rank of 150, putting it in the bottom 41% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Discover (DFS) Outpaces Stock Market Gains: What You Should Know
Discover (DFS - Free Report) closed at $106.38 in the latest trading session, marking a +1.91% move from the prior day. The stock outpaced the S&P 500's daily gain of 1.41%. At the same time, the Dow added 0.98%, and the tech-heavy Nasdaq lost 0.02%.
Prior to today's trading, shares of the credit card issuer and lender had gained 4.09% over the past month. This has traded in line with the Finance sector and lagged the S&P 500's gain of 4.68% in that time.
Investors will be hoping for strength from Discover as it approaches its next earnings release. The company is expected to report EPS of $3.73, up 5.37% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $3.33 billion, up 19.85% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $15.32 per share and revenue of $12.92 billion, which would represent changes of -14.08% and +6.91%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Discover. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.33% lower. Discover is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Discover currently has a Forward P/E ratio of 6.81. For comparison, its industry has an average Forward P/E of 5.66, which means Discover is trading at a premium to the group.
Investors should also note that DFS has a PEG ratio of 0.23 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Financial - Consumer Loans industry currently had an average PEG ratio of 0.28 as of yesterday's close.
The Financial - Consumer Loans industry is part of the Finance sector. This group has a Zacks Industry Rank of 150, putting it in the bottom 41% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.