Zacks Research Brokers Increase Earnings Estimates for DFS

Discover Financial Services (NYSE:DFS) – Zacks Research lifted their Q1 2025 earnings estimates for Discover Financial Services in a research report issued to clients and investors on Wednesday, February 5th. Zacks Research analyst D. Chatterjee now expects that the financial services provider will earn $3.24 per share for the quarter, up from their previous forecast of $3.08. The consensus estimate for Discover Financial Services’ current full-year earnings is $13.39 per share. Zacks Research also issued estimates for Discover Financial Services’ FY2026 earnings at $15.00 EPS and FY2027 earnings at $17.40 EPS.

Several other research firms have also weighed in on DFS. Evercore ISI increased their price objective on shares of Discover Financial Services from $156.00 to $163.00 and gave the stock an “in-line” rating in a research note on Wednesday, October 30th. Keefe, Bruyette & Woods upped their target price on shares of Discover Financial Services from $170.00 to $232.00 and gave the stock an “outperform” rating in a research report on Monday, December 9th. Barclays upped their target price on shares of Discover Financial Services from $186.00 to $209.00 and gave the stock an “overweight” rating in a research report on Friday, January 24th. StockNews.com cut shares of Discover Financial Services from a “buy” rating to a “hold” rating in a research report on Friday, January 24th. Finally, Truist Financial upped their target price on shares of Discover Financial Services from $233.00 to $262.00 and gave the stock a “buy” rating in a research report on Monday, January 27th. Ten equities research analysts have rated the stock with a hold rating and eight have issued a buy rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of “Hold” and an average price target of $182.64.

Discover Financial Services Price Performance

DFS opened at $199.73 on Friday. The firm has a market cap of $50.19 billion, a price-to-earnings ratio of 12.51, a price-to-earnings-growth ratio of 0.64 and a beta of 1.46. Discover Financial Services has a fifty-two week low of $106.65 and a fifty-two week high of $205.76. The company’s 50-day moving average price is $182.89 and its 200 day moving average price is $158.54. The company has a quick ratio of 1.03, a current ratio of 1.09 and a debt-to-equity ratio of 1.09.

Discover Financial Services (NYSE:DFS) last released its quarterly earnings data on Wednesday, January 22nd. The financial services provider reported $5.11 earnings per share for the quarter, topping the consensus estimate of $3.13 by $1.98. Discover Financial Services had a net margin of 17.29% and a return on equity of 26.18%.

Institutional Trading of Discover Financial Services

A number of large investors have recently added to or reduced their stakes in the business. State Street Corp boosted its holdings in Discover Financial Services by 0.8% during the third quarter. State Street Corp now owns 10,498,044 shares of the financial services provider’s stock worth $1,472,771,000 after buying an additional 80,601 shares in the last quarter. FMR LLC boosted its holdings in Discover Financial Services by 8.0% during the third quarter. FMR LLC now owns 7,493,862 shares of the financial services provider’s stock worth $1,051,314,000 after buying an additional 558,227 shares in the last quarter. C2P Capital Advisory Group LLC d.b.a. Prosperity Capital Advisors bought a new stake in Discover Financial Services during the fourth quarter worth approximately $351,766,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its holdings in Discover Financial Services by 0.7% during the third quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 1,834,705 shares of the financial services provider’s stock worth $257,391,000 after buying an additional 12,255 shares in the last quarter. Finally, Charles Schwab Investment Management Inc. boosted its holdings in Discover Financial Services by 0.6% during the fourth quarter. Charles Schwab Investment Management Inc. now owns 1,738,804 shares of the financial services provider’s stock worth $301,213,000 after buying an additional 10,528 shares in the last quarter. 86.94% of the stock is currently owned by institutional investors.

Discover Financial Services Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, June 6th. Investors of record on Friday, May 23rd will be issued a dividend of $0.70 per share. This represents a $2.80 dividend on an annualized basis and a yield of 1.40%. The ex-dividend date is Friday, May 23rd. Discover Financial Services’s payout ratio is 17.54%.

About Discover Financial Services

Discover Financial Services, through its subsidiaries, provides digital banking products and services, and payment services 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; personal loans, home loans, and other consumer lending; and direct-to-consumer deposit products comprising savings accounts, certificates of deposit, money market accounts, IRA certificates of deposit, IRA savings accounts and checking accounts, and sweep accounts.