Zacks Research Issues Optimistic Estimate for DFS Earnings

Discover Financial Services (NYSE:DFS) – Research analysts at Zacks Research lifted their Q2 2025 earnings estimates for shares of Discover Financial Services in a research report issued to clients and investors on Tuesday, March 4th. Zacks Research analyst D. Chatterjee now expects that the financial services provider will earn $3.34 per share for the quarter, up from their previous forecast of $3.33. The consensus estimate for Discover Financial Services’ current full-year earnings is $13.88 per share. Zacks Research also issued estimates for Discover Financial Services’ FY2027 earnings at $17.42 EPS.

Discover Financial Services (NYSE:DFS) last announced its quarterly earnings results on Wednesday, January 22nd. The financial services provider reported $5.11 EPS 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%.

A number of other research analysts have also issued reports on the stock. Keefe, Bruyette & Woods raised their target price on shares of Discover Financial Services from $170.00 to $232.00 and gave the company an “outperform” rating in a research note on Monday, December 9th. Royal Bank of Canada raised their price target on shares of Discover Financial Services from $193.00 to $210.00 and gave the stock a “sector perform” rating in a research report on Friday, January 24th. Truist Financial raised their price target 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. JPMorgan Chase & Co. raised their price target on shares of Discover Financial Services from $146.00 to $169.00 and gave the stock a “neutral” rating in a research report on Friday, January 24th. Finally, StockNews.com downgraded shares of Discover Financial Services from a “buy” rating to a “hold” rating in a report on Friday, January 24th. Nine analysts have rated the stock with a hold rating and five have issued a buy rating to the stock. According to data from MarketBeat, Discover Financial Services presently has a consensus rating of “Hold” and an average price target of $191.91.

Discover Financial Services Stock Performance

NYSE:DFS opened at $181.28 on Wednesday. Discover Financial Services has a 1 year low of $118.74 and a 1 year high of $205.76. The firm’s fifty day simple moving average is $189.27 and its 200 day simple moving average is $166.62. The company has a current ratio of 1.09, a quick ratio of 1.03 and a debt-to-equity ratio of 1.09. The firm has a market capitalization of $45.61 billion, a PE ratio of 11.36, a PEG ratio of 1.51 and a beta of 1.46.

Discover Financial Services Announces Dividend

The company also recently declared 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 annualized dividend and a yield of 1.54%. The ex-dividend date of this dividend is Friday, May 23rd. Discover Financial Services’s dividend payout ratio is currently 17.54%.

Hedge Funds Weigh In On Discover Financial Services

Institutional investors have recently added to or reduced their stakes in the company. Point72 Asia Singapore Pte. Ltd. bought a new position in shares of Discover Financial Services in the third quarter worth about $30,000. SBI Securities Co. Ltd. bought a new position in shares of Discover Financial Services in the fourth quarter worth about $33,000. Flagship Wealth Advisors LLC bought a new position in shares of Discover Financial Services in the fourth quarter worth about $34,000. Grove Bank & Trust raised its stake in shares of Discover Financial Services by 78.1% in the fourth quarter. Grove Bank & Trust now owns 203 shares of the financial services provider’s stock worth $35,000 after acquiring an additional 89 shares during the last quarter. Finally, Bfsg LLC bought a new position in shares of Discover Financial Services in the fourth quarter worth about $35,000. 86.94% of the stock is owned by institutional investors.

Discover Financial Services Company Profile

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.