Discover Financial Services Stock Performance

DFS Stock  USD 131.09  3.09  2.41%   
On a scale of 0 to 100, Discover Financial holds a performance score of 8. The firm shows a Beta (market volatility) of 0.67, which means possible diversification benefits within a given portfolio. As returns on the market increase, Discover Financial's returns are expected to increase less than the market. However, during the bear market, the loss of holding Discover Financial is expected to be smaller as well. Please check Discover Financial's value at risk, as well as the relationship between the skewness and day median price , to make a quick decision on whether Discover Financial's price patterns will revert.

Risk-Adjusted Performance

8 of 100

 
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Compared to the overall equity markets, risk-adjusted returns on investments in Discover Financial Services are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unfluctuating technical and fundamental indicators, Discover Financial unveiled solid returns over the last few months and may actually be approaching a breakup point. ...more

Actual Historical Performance (%)

One Day Return
2.41
Five Day Return
3.07
Year To Date Return
16.69
Ten Year Return
125.28
All Time Return
355.97
Forward Dividend Yield
0.0219
Payout Ratio
0.2489
Forward Dividend Rate
2.8
Dividend Date
2024-03-07
Ex Dividend Date
2024-02-21
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10
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03/28/2024
Begin Period Cash Flow8.9 B
  

Discover Financial Relative Risk vs. Return Landscape

If you would invest  11,171  in Discover Financial Services on December 30, 2023 and sell it today you would earn a total of  1,938  from holding Discover Financial Services or generate 17.35% return on investment over 90 days. Discover Financial Services is generating 0.2948% of daily returns assuming volatility of 2.5654% on return distribution over 90 days investment horizon. In other words, 22% of stocks are less volatile than Discover, and above 95% of all equities are expected to generate higher returns over the next 90 days.
  Expected Return   
       Risk  
Considering the 90-day investment horizon Discover Financial is expected to generate 4.48 times more return on investment than the market. However, the company is 4.48 times more volatile than its market benchmark. It trades about 0.11 of its potential returns per unit of risk. The NYSE Composite is currently generating roughly 0.24 per unit of risk.

Discover Financial Market Risk Analysis

Today, many novice investors tend to focus exclusively on investment returns with little concern for Discover Financial's investment risk. Standard deviation is the most common way to measure market volatility of stocks, such as Discover Financial Services, and traders can use it to determine the average amount a Discover Financial's price has deviated from the expected return over a period of time. It is calculated by determining the expected price for the established period and then subtracting this figure from each price point. The differences are then squared, summed, and averaged to produce the variance.

Sharpe Ratio = 0.1149

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Estimated Market Risk

 2.57
  actual daily
22
78% of assets are more volatile

Expected Return

 0.29
  actual daily
5
95% of assets have higher returns

Risk-Adjusted Return

 0.11
  actual daily
8
92% of assets perform better
Based on monthly moving average Discover Financial is performing at about 8% of its full potential. If added to a well diversified portfolio the total return can be enhanced and market risk can be reduced. You can increase risk-adjusted return of Discover Financial by adding it to a well-diversified portfolio.

Discover Financial Fundamentals Growth

Discover Stock prices reflect investors' perceptions of the future prospects and financial health of Discover Financial, and Discover Financial fundamentals are critical determinants of its market performance. Overall, investors pay close attention to revenue and earnings growth, profit margins, and debt levels. These fundamentals can have a significant impact on Discover Stock performance.

About Discover Financial Performance

To evaluate Discover Financial Stock as a possible investment, you need to clearly understand its upside potential, downside risk, and overall future performance outlook. You may be satisfied when Discover Financial generates a 15% return over the last few months, but what if the market is generating 25% over the same period? In this case, it makes sense to compare Discover Stock's performance with different market indexes, such as the Dow or NASDAQ Composite. These indexes can act as benchmarks that will help you to understand Discover Financial market performance in a much more refined way. The Macroaxis performance score is an integer between 0 and 100 that represents Discover's market performance from a risk-adjusted return perspective. Generally speaking, the higher the score, the better is overall performance as compared to other investors. The score is normalized against the average investing universe (the best we can interpret from the data available). Within this methodology, scores of individual equity instruments will always be inferior to the scores of portfolios of equities as portfolios typically diversify a lot of unsystematic risks away. The formula to derive the Macroaxis score bases on multiple unequally-weighted factors. For more information, refer to our portfolio performance evaluation section.
Please also refer to our technical analysis and fundamental analysis pages.
Last ReportedProjected for 2024
Return On Capital Employed 0.12  0.17 
Return On Assets 0.02  0.02 
Return On Equity 0.20  0.16 

Things to note about Discover Financial performance evaluation

Checking the ongoing alerts about Discover Financial for important developments is a great way to find new opportunities for your next move. Stock alerts and notifications screener for Discover Financial help investors to be notified of important events, changes in technical or fundamental conditions, and significant headlines that can affect investment decisions.
Over 89.0% of the company shares are held by institutions such as insurance companies
On 7th of March 2024 Discover Financial paid $ 0.7 per share dividend to its current shareholders
Latest headline from businesswire.com: Discover Financial Services Announces First Quarter 2024 Earnings Release On April 17, 2024, and Conference Call on April 18, 2024
Evaluating Discover Financial's performance can involve analyzing a variety of financial metrics and factors. Some of the key considerations to evaluate Discover Financial's stock performance include:
  • Analyzing Discover Financial's financial statements, including its income statement, balance sheet, and cash flow statement, helps in understanding its overall financial health and growth potential.
  • Getting a closer look at valuation ratios like price-to-earnings (P/E) ratio, price-to-sales (P/S) ratio, and price-to-book (P/B) ratio help in understanding whether Discover Financial's stock is overvalued or undervalued compared to its peers.
  • Examining Discover Financial's industry or sector and how it is performing can give you an idea of its growth potential and how it is positioned relative to its competitors.
  • Evaluating Discover Financial's management team can have a significant impact on its success or failure. Reviewing the track record and experience of Discover Financial's management team can help you assess the Company's leadership.
  • Pay attention to analyst opinions and ratings of Discover Financial's stock. These opinions can provide insight into Discover Financial's potential for growth and whether the stock is currently undervalued or overvalued.
It's essential to remember that evaluating Discover Financial's stock performance is not an exact science, and many factors can impact Discover Financial's stock market price. Therefore, it's also important to diversify your portfolio and not rely solely on one company or stock for your investments.
When determining whether Discover Financial is a strong investment it is important to analyze Discover Financial's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Discover Financial's future performance. For an informed investment choice regarding Discover Stock, refer to the following important reports:
Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Discover Financial Services. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in census.
Note that the Discover Financial information on this page should be used as a complementary analysis to other Discover Financial's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..

Complementary Tools for Discover Stock analysis

When running Discover Financial's price analysis, check to measure Discover Financial's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Discover Financial is operating at the current time. Most of Discover Financial's value examination focuses on studying past and present price action to predict the probability of Discover Financial's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Discover Financial's price. Additionally, you may evaluate how the addition of Discover Financial to your portfolios can decrease your overall portfolio volatility.
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Is Discover Financial's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Discover Financial. If investors know Discover will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Discover Financial listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.59)
Dividend Share
2.7
Earnings Share
11.26
Revenue Per Share
38.748
Quarterly Revenue Growth
(0.19)
The market value of Discover Financial is measured differently than its book value, which is the value of Discover that is recorded on the company's balance sheet. Investors also form their own opinion of Discover Financial's value that differs from its market value or its book value, called intrinsic value, which is Discover Financial's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Discover Financial's market value can be influenced by many factors that don't directly affect Discover Financial's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Discover Financial's value and its price as these two are different measures arrived at by different means. Investors typically determine if Discover Financial is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Discover Financial's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.