It’s still a bull thesis, just subverted: Discover Financial Services (DFS)

At the time of writing, Discover Financial Services [DFS] stock is trading at $182.56, down -0.03%. An important factor to consider is whether the stock is rising or falling in short-term value. The DFS shares have gain 5.67% over the last week, with a monthly amount glided 21.11%, and seem to be holding up well over a long-time horizon.

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From an analyst’s perspective:

Previously, Morgan Stanley upgraded its rating to Overweight on February 08, 2024, and elevated its price target to $133. On January 19, 2024, downgrade downgraded it’s rating to Hold and revised its price target to $107 on the stock. Deutsche Bank started tracking the stock assigning a Hold rating and suggested a price target of $140 on January 10, 2024. Piper Sandler upgraded its rating to a Overweight and raised its price target to $129 on January 03, 2024. Citigroup upgraded its rating to Buy for this stock on December 20, 2023, and upped its price target to $133. In a note dated December 06, 2023, BofA Securities upgraded an Buy rating on this stock and boosted its target price from $94 to $116.

For the past year, the stock price of Discover Financial Services fluctuated between $85.19 and $188.26. Currently, Wall Street analysts expect the stock to reach $135.32 within the next 12 months. Discover Financial Services [NYSE: DFS] shares were valued at $182.56 at the most recent close of the market. An investor can expect a potential drop of -25.88% based on the average DFS price forecast.

Analyzing the DFS fundamentals

According to Discover Financial Services [NYSE:DFS], the company’s sales were 23.16B for trailing twelve months, which represents an 10.84% jump. Gross Profit Margin for this corporation currently stands at 1.0% with Operating Profit Margin at 0.36%, Pretax Profit Margin comes in at 0.18%, and Net Profit Margin reading is 0.14%. To continue investigating profitability, this company’s Return on Assets is posted at 0.02, Equity is 0.2 and Total Capital is 0.05. Upon thorough examination of the company’s fundamental financial framework, it becomes apparent that the debt-to-equity ratio stands at 1.05.

Before buying any particular stock, readers tend to pay close attention to the indicators that support and create resistance. The company’s stock is currently sitting at 180.68 points at the first support level, and at 178.81 for the second support level. However, for the 1st resistance point, the stock is sitting at 184.60, and for the 2nd resistance point, it is at 186.65.

Ratios To Look Out For

It is important to note that Discover Financial Services [NYSE:DFS] has a current ratio of 2.27. Considering the valuation of this stock, the price to sales ratio is 1.98, the price to book ratio is 2.65 and price to earnings (TTM) ratio is 14.73.