Discover Financial Services Stock Buy Hold or Sell Recommendation
| DFS Stock | USD 174.91 2.84 1.65% |
Considering the 90-day investment horizon and your above-average risk tolerance, our recommendation regarding Discover Financial Services is 'Strong Sell'. A buy or sell recommendation provided by Macroaxis is an automated directive regarding whether to purchase or sell Discover Financial Services given historical horizon and risk tolerance towards Discover Financial. When Macroaxis issues a 'buy' or 'sell' recommendation for Discover Financial Services, the advice is generated through an automated system that utilizes algorithms and statistical models.
Check out Discover Financial Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. Note, we conduct extensive research on individual companies such as Discover and provide practical buy, sell, or hold advice based on investors' constraints. Discover Financial Services. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in census.
Discover |
Execute Discover Financial Buy or Sell Advice
The Discover recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Discover Financial Services. Macroaxis does not own or have any residual interests in Discover Financial Services or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Discover Financial's advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
 |  |
Strong Sell
Market Performance | Good | Details | |
Volatility | Very steady | Details | |
Hype Condition | Stale | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Below Average | Details | |
Economic Sensitivity | Moves indifferently to market moves | Details | |
Investor Sentiment | Impartial | Details | |
Analyst Consensus | Not Available | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unavailable | Details |
Discover Financial Trading Alerts and Improvement Suggestions
| Discover Financial had very high historical volatility over the last 90 days | |
| Over 86.0% of the company shares are held by institutions such as insurance companies |
Discover Financial Returns Distribution Density
The distribution of Discover Financial's historical returns is an attempt to chart the uncertainty of Discover Financial's future price movements. The chart of the probability distribution of Discover Financial daily returns describes the distribution of returns around its average expected value. We use Discover Financial Services price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Discover Financial returns is essential to provide solid investment advice for Discover Financial.
| Mean Return | 0.49 | Value At Risk | -2.77 | Potential Upside | 4.04 | Standard Deviation | 3.26 |
Return Density |
| Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Discover Financial historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.
Discover Financial Greeks
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Discover Financial or Consumer Finance sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Discover Financial's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Discover stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α | Alpha over Dow Jones | 0.49 | |
β | Beta against Dow Jones | -0.12 | |
σ | Overall volatility | 3.26 | |
Ir | Information ratio | 0.12 |
Discover Financial Volatility Alert
Discover Financial Services has relatively low volatility with skewness of 3.65 and kurtosis of 20.81. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Discover Financial's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Discover Financial's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.Discover Financial Fundamentals Vs Peers
Comparing Discover Financial's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Discover Financial's direct or indirect competition across all of the common fundamentals between Discover Financial and the related equities. This way, we can detect undervalued stocks with similar characteristics as Discover Financial or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Discover Financial's fundamental indicators could also be used in its relative valuation, which is a method of valuing Discover Financial by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare Discover Financial to competition |
| Fundamentals | Discover Financial | Peer Average |
| Return On Equity | 0.2 | -0.31 |
| Return On Asset | 0.0216 | -0.14 |
| Profit Margin | 0.27 % | (1.27) % |
| Operating Margin | 0.34 % | (5.51) % |
| Current Valuation | 35.12 B | 16.62 B |
| Shares Outstanding | 251.07 M | 571.82 M |
| Shares Owned By Insiders | 0.57 % | 10.09 % |
| Shares Owned By Institutions | 86.20 % | 39.21 % |
| Number Of Shares Shorted | 4.27 M | 4.71 M |
| Price To Earning | 7.05 X | 28.72 X |
| Price To Book | 2.51 X | 9.51 X |
| Price To Sales | 3.71 X | 11.42 X |
| Revenue | 9.84 B | 9.43 B |
| Gross Profit | 10.46 B | 27.38 B |
| EBITDA | 4.01 B | 3.9 B |
| Net Income | 2.92 B | 570.98 M |
| Cash And Equivalents | 10 B | 2.7 B |
| Cash Per Share | 36.61 X | 5.01 X |
| Total Debt | 21.33 B | 5.32 B |
| Debt To Equity | 1.41 % | 48.70 % |
| Current Ratio | 1.24 X | 2.16 X |
| Book Value Per Share | 68.77 X | 1.93 K |
| Cash Flow From Operations | 8.56 B | 971.22 M |
| Short Ratio | 3.24 X | 4.00 X |
| Earnings Per Share | 12.42 X | 3.12 X |
| Price To Earnings To Growth | 4.39 X | 4.89 X |
| Target Price | 162.67 | |
| Number Of Employees | 21.1 K | 18.84 K |
| Beta | 1.4 | -0.15 |
| Market Capitalization | 43.38 B | 19.03 B |
| Total Asset | 151.61 B | 29.47 B |
| Retained Earnings | 30.45 B | 9.33 B |
| Working Capital | (50.73 M) | 1.48 B |
Note: Disposition of 1463 shares by John Owen of Discover Financial at 105.52 subject to Rule 16b-3 [view details]
Discover Financial Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Discover . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
About Discover Financial Buy or Sell Advice
When is the right time to buy or sell Discover Financial Services? Buying financial instruments such as Discover Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
Use Investing Ideas to Build Portfolios
In addition to having Discover Financial in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Insurance Thematic Idea Now
Insurance
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Insurance theme has 61 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Insurance Theme or any other thematic opportunities.
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Additional 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.