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Discover Financial Services (DFS) is a leading credit services business with stocks listed in the US. It opened the day at US$114.05 after a previous close of US$117.26. During the day the price has varied from a low of USD113.04 to a high of USD115.3. The latest price was USD114.11 (25 minute delay). Discover Financial Services is listed on the NYSE. All prices are listed in US Dollars.
How to buy shares in Discover Financial Services
- Compare share trading platforms. To buy shares in a US company from Australia you'll need to find a trading platform that offers access to US stock markets. If you're just starting out, look for a platform with low brokerage and foreign exchange fees.
- Open and fund your brokerage account. Complete an application with your personal and financial details, like your ID and tax file number. Fund your account with a bank transfer, credit card or debit card.
- Search for Discover Financial Services. Find the share by name or ticker symbol: DFS. Research its history to confirm it's a solid investment against your financial goals.
- Purchase now or later. Buy today with a market order or use a limit order to delay your purchase until Discover Financial Services reaches your desired price. To spread out your risk, look into dollar-cost averaging, which smooths out buying at consistent intervals and amounts.
- Decide on how many to buy. At last close price of US$123.38, weigh your budget against a diversified portfolio that can minimise risk through the market's ups and downs. You may be able to buy a fractional share of Discover Financial Services, depending on your broker.
- Check in on your investment. Congratulations, you own a part of Discover Financial Services. Optimise your portfolio by tracking how your stock — and even the business — performs with an eye on the long term. You may be eligible for dividends and shareholder voting rights on directors and management that can affect your stock.
What's in this guide?
- Discover Financial Services key stats
- Compare share trading platforms
- Is Discover Financial Services stock a buy or sell?
- Discover Financial Services performance over time
- Can I short Discover Financial Services shares?
- Is Discover Financial Services suitable for ethical investing?
- Are Discover Financial Services shares over-valued?
- Discover Financial Services's financials
- How volatile are Discover Financial Services shares?
- Does Discover Financial Services pay a dividend?
- Other common questions
Discover Financial Services share priceUse our graph to track the performance of DFS stocks over time.
Discover Financial Services shares at a glance
|52-week range||US$44.3756 - US$125.38|
|50-day moving average||US$117.8994|
|200-day moving average||US$99.5745|
|Dividend yield||US$1.76 (1.44%)|
|Earnings per share (TTM)||US$8.8738|
Compare share trading platforms to buy stock
We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.
Is it a good time to buy Discover Financial Services stock?
The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.
Discover Financial Services price performance over time
|1 week (2021-06-11)||-7.34%|
|1 month (2021-05-21)||0.12%|
|3 months (2021-03-19)||20.39%|
|6 months (2020-12-18)||32.70%|
|1 year (2020-06-19)||112.38%|
|2 years (2019-06-20)||45.57%|
|3 years (2018-06-20)||55.53%|
|5 years (2016-06-20)||114.57%|
Is Discover Financial Services under- or over-valued?
Valuing Discover Financial Services stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of Discover Financial Services's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.
Discover Financial Services's P/E ratio
Discover Financial Services's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 7x. In other words, Discover Financial Services shares trade at around 7x recent earnings.
That's relatively low compared to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29). The low P/E ratio could mean that investors are pessimistic about the outlook for the shares or simply that they're under-valued.
Discover Financial Services's PEG ratio
Discover Financial Services's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 0.456. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value.
The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into Discover Financial Services's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.
Discover Financial Services financials
|Revenue TTM||US$8 billion|
|Operating margin TTM||46.65%|
|Gross profit TTM||US$5.4 billion|
|Return on assets TTM||2.47%|
|Return on equity TTM||2696.04%|
|Market capitalisation||US$37.5 billion|
TTM: trailing 12 months
Shorting Discover Financial Services shares
There are currently 4.5 million Discover Financial Services shares held short by investors – that's known as Discover Financial Services's "short interest". This figure is 22.3% down from 5.8 million last month.
There are a few different ways that this level of interest in shorting Discover Financial Services shares can be evaluated.
Discover Financial Services's "short interest ratio" (SIR)
Discover Financial Services's "short interest ratio" (SIR) is the quantity of Discover Financial Services shares currently shorted divided by the average quantity of Discover Financial Services shares traded daily (recently around 1.9 million). Discover Financial Services's SIR currently stands at 2.41. In other words for every 100,000 Discover Financial Services shares traded daily on the market, roughly 2410 shares are currently held short.
However Discover Financial Services's short interest can also be evaluated against the total number of Discover Financial Services shares, or, against the total number of tradable Discover Financial Services shares (the shares that aren't held by "insiders" or major long-term shareholders – also known as the "float"). In this case Discover Financial Services's short interest could be expressed as 0.01% of the outstanding shares (for every 100,000 Discover Financial Services shares in existence, roughly 10 shares are currently held short) or 0.0148% of the tradable shares (for every 100,000 tradable Discover Financial Services shares, roughly 15 shares are currently held short).
Such a low SIR usually points to an optimistic outlook for the share price, with fewer people currently willing to bet against Discover Financial Services.
Find out more about how you can short Discover Financial Services stock.
Discover Financial Services's environmental, social and governance track record
Environmental, social and governance (known as ESG) criteria are a set of three factors used to measure the sustainability and social impact of companies like Discover Financial Services.
When it comes to ESG scores, lower is better, and lower scores are generally associated with lower risk for would-be investors.
Discover Financial Services's total ESG risk score
Total ESG risk: 28.56
Socially conscious investors use ESG scores to screen how an investment aligns with their worldview, and Discover Financial Services's overall score of 28.56 (as at 12/31/2018) is pretty good – landing it in it in the 39th percentile of companies rated in the same sector.
ESG scores are increasingly used to estimate the level of risk a company like Discover Financial Services is exposed to within the areas of "environmental" (carbon footprint, resource use etc.), "social" (health and safety, human rights etc.), and "governance" (anti-corruption, tax transparency etc.).
Discover Financial Services's environmental score
Environmental score: 7.61/100
Discover Financial Services's environmental score of 7.61 puts it squarely in the 8th percentile of companies rated in the same sector. This could suggest that Discover Financial Services is a leader in its sector terms of its environmental impact, and exposed to a lower level of risk.
Discover Financial Services's social score
Social score: 19.64/100
Discover Financial Services's social score of 19.64 puts it squarely in the 8th percentile of companies rated in the same sector. This could suggest that Discover Financial Services is a leader in its sector when it comes to taking good care of its workforce and the communities it impacts.
Discover Financial Services's governance score
Governance score: 16.82/100
Discover Financial Services's governance score puts it squarely in the 8th percentile of companies rated in the same sector. That could suggest that Discover Financial Services is a leader in its sector when it comes to responsible management and strategy, and exposed to a lower level of risk.
Discover Financial Services's controversy score
Controversy score: 1/5
ESG scores also evaluate any incidences of controversy that a company has been involved in. Discover Financial Services scored a 1 out of 5 for controversy – the highest score possible, reflecting that Discover Financial Services has managed to keep its nose clean.
Environmental, social, and governance (ESG) summary
|Total ESG score||28.56|
|Total ESG percentile||38.78|
|Environmental score percentile||8|
|Social score percentile||8|
|Governance score percentile||8|
|Level of controversy||1|
Discover Financial Services share dividends
Dividend payout ratio: 19.06% of net profits
Recently Discover Financial Services has paid out, on average, around 19.06% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 1.44% of the current stock value. This means that over a year, based on recent payouts (which are sadly no guarantee of future payouts), Discover Financial Services shareholders could enjoy a 1.44% return on their shares, in the form of dividend payments. In Discover Financial Services's case, that would currently equate to about $1.76 per share.
While Discover Financial Services's payout ratio might seem low, this can signify that Discover Financial Services is investing more in its future growth.
Discover Financial Services's most recent dividend payout was on 2 June 2021. The latest dividend was paid out to all shareholders who bought their shares by 18 May 2021 (the "ex-dividend date").
Discover Financial Services share price volatility
Over the last 12 months, Discover Financial Services's shares have ranged in value from as little as US$44.3756 up to US$125.38. A popular way to gauge a stock's volatility is its "beta".
Beta is a measure of a share's volatility in relation to the market. The market (NYSE average) beta is 1, while Discover Financial Services's is 1.8321. This would suggest that Discover Financial Services's shares are more volatile than the average for this exchange and represent, relatively-speaking, a higher risk (but potentially also market-beating returns).
Discover Financial Services overview
Discover Financial Services, through its subsidiaries, operates as a digital banking and payment services company in the United States. It operates in two segments, Digital Banking and Payment Services. The Digital Banking segment offers Discover-branded credit cards to individuals; and other consumer products and services, including private student loans, personal loans, home loans, and other consumer lending, as well as deposit products, such as certificates of deposit, money market accounts, IRA certificates of deposit, IRA savings accounts, checking accounts, and sweep accounts. The Payment Services segment operates the PULSE network, an automated teller machine, debit, and electronic funds transfer network; Diners Club International, a payments network that issues Diners Club branded charge cards and/or provides card acceptance services; and Discover Network that processes transactions for Discover-branded credit and debit cards, as well as offers payment transaction processing and settlement services. Discover has strategic network alliance agreement with Arab Financial Services. The company was incorporated in 1960 and is based in Riverwoods, Illinois.
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