Discover Financial Services ($DFS) Stock Forecast: Up 5.2% Today

What is Discover Financial Services?

Discover Financial Services (DFS) is a leading digital banking and payment services company that offers a range of financial products including credit cards, personal loans, student loans, and banking services. The company operates primarily in the United States.

Why is Discover Financial Services going up?

DFS stock is up 5.2% on Jun 28, 2024 19:05

• Discover Financial Services (DFS) recently noted a bullish shift potentially linked to Carlyle and KKR acquiring a $10 billion student loan book from the company. This development signifies potential strategic decisions or capital reallocation by DFS.
• Investor sentiment towards financial services companies like DFS might have been positively impacted by JMP Securities analyst David Scharf initiating coverage on Affirm Holdings Inc (AFRM) with a Market Perform rating, aligning with the bullish movement.
• The optimistic market sentiment towards financial services and fintech companies today may have contributed to the positive performance of DFS.

DFS Price Chart

DFS News

BNPL Company Affirm Holdings Exhibits Strong Growth And Fair Valuation Amid Regulatory Risks, Says Analyst - Affirm Holdings ( NASDAQ:AFRM )

JMP Securities analyst David Scharf initiated coverage on Affirm Holdings Inc AFRM with a Market Perform rating. The company is a "founding father" of the Buy Now Pay Later ( BNPL ) industry, having underwritten $73 billion of consumer loans since its founding in 2012 and issued $8 billion of ...

https://www.benzinga.com/analyst-ratings/analyst-color/24/06/39554258/bnpl-company-affirm-holdings-exhibits-strong-growth-and-fair-valuation-amid-regulat

Carlyle, KKR win auction for $10 billion student loan book from Discover Financial, FT reports

https://www.investing.com/news/stock-market-news/carlyle-kkr-win-auction-for-10-billion-student-loan-book-from-discover-financial-ft-reports-3498500

https://www.investing.com/news/stock-market-news/carlyle-kkr-win-auction-for-10-billion-student-loan-book-from-discover-financial-ft-reports-3498500

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Discover Financial Services Price History

28.05.2024 - DFS Stock was up 5.2%

• DFS stock surged after Carlyle and KKR won the auction for a $10 billion student loan book from Discover Financial. This acquisition is seen as a positive move for Discover Financial, potentially unlocking value and improving its financial position.
• The market reacted positively to the news, as investors may view this deal as a strategic move that could lead to increased profitability and growth opportunities for Discover Financial in the future.
• The bullish movement in DFS stock today could be attributed to the market's optimism surrounding the potential benefits and synergies that may arise from the sale of the student loan book to Carlyle and KKR.

18.03.2024 - DFS Stock was up 3.5%

• Despite falling short of EPS projections, Discover Financial Services exceeded revenue expectations in Q1 2024, prompting the positive market movement.
• The lower-than-expected earnings initially created market uncertainty, but strong revenue results aided in restoring investor confidence.
• Robust loan growth, expansion of net interest margin, and improved delinquency rates were instrumental in fueling the stock's bullish performance.
• The announced merger with Capital One to form a leading banking and payments entity likely instilled optimism in investors, contributing to the positive market sentiment surrounding Discover Financial Services.

20.01.2024 - DFS Stock was up 3.8%

• DFS shares surged after announcing a merger deal to be acquired by Capital One Financial Corp, which offered a 26.6% premium over Discover's last price.
• The positive market sentiment towards the acquisition contributed to the bullish movement in DFS stock.
• The overall market was mixed, with U.S. stocks mostly lower, but consumer staples shares rose by 1%, indicating a sector-specific positive sentiment.
• The anticipation of Nvidia's earnings tomorrow and concerns about higher interest rates and the Chinese economy may have influenced the overall market movement, but DFS stood out with its significant surge due to the acquisition news.

20.01.2024 - DFS Stock was up 10.5%

• The positive movement in DFS stock is linked to the announcement of Capital One Financial Corp's intention to acquire Discover Financial Services in a substantial $35.3 billion all-stock deal. Here is an analysis of the market activity:
• DFS shares surged as investors reacted favorably to the acquisition news, indicating potential synergies and growth prospects for both companies.
• The acquisition news likely instilled confidence in investors, resulting in heightened demand for DFS stock.
• Capital One's strategic move could potentially establish a robust presence in the financial sector, boosting the value and sentiment surrounding Discover Financial Services.

19.00.2024 - DFS Stock was up 10.7%

• Discover Financial Services reported a 62% plunge in its profit for the fourth quarter, falling below the Street's estimate.
• Fifth Third Bancorp decreased its holdings in DFS by 77.3% in the 3rd quarter, which may have contributed to the bearish movement.
• The overall market sentiment in Asia was mixed, with Japan's inflation slowing and Hong Kong stocks facing losses, reflecting investor concerns about the economic outlook.
• The decline in Japan's inflation increases the likelihood that the Bank of Japan will maintain its ultra-low interest rates, which may have impacted DFS negatively.

01.11.2023 - DFS Stock was up 5.1%

• Discover Financial Services shares edged up on plans to exit the student loan market. The potential sale of its student loans portfolio is seen as a positive move that could optimize the company's offerings.
• Exiting the student loan servicing business reduces reputational risk for the company and addresses regulatory issues it faces.
• Analysts project a potential gain on the student loan portfolio, which could lead to an accretion to Discover Financial's earnings per share if capital is allocated to stock buybacks.
• The stock's bullish movement may also be influenced by the anticipation of a new chief executive being identified, as the company has been searching for a replacement.

19.09.2023 - DFS Stock was up 5.3%

• The bearish movement in DFS stock today can be attributed to the following factors:
• 1. Missed profit estimates: Discover Financial Services reported weaker-than-expected earnings for the third quarter, missing profit estimates. This disappointment likely contributed to the bearish sentiment among investors.
• 2. Higher bad loan provision: The company also faced challenges due to an increase in bad loan provisions, which impacted its profitability. This negative development may have further fueled the bearish movement.
• 3. Mixed performance: While Discover Financial Services beat revenue expectations, the miss in earnings per share (EPS) and the drop in profit compared to the same period last year may have overshadowed the positive revenue performance, leading to the bearish market movement.
• 4. Class action lawsuits: The reminder of class action lawsuits against Discover Financial Services may have added to the negative sentiment surrounding the stock, potentially influencing the bearish movement.
• Overall, the combination of missed profit estimates, higher bad loan provision, mixed performance, and the presence of class action lawsuits likely contributed to the bearish market movement in DFS stock today.

01.08.2023 - DFS Stock was up 1.3%

• The bullish movement in DFS stock today could be attributed to the following factors:
• 1. Investigation Claims: The news articles mentioning investigations against Discover Financial Services may have initially caused some uncertainty in the market. However, as investors digested the news, they may have realized that the investigations are not necessarily indicative of wrongdoing and may have seen this as an opportunity to buy the stock at a discounted price.
• 2. Bargain Buys: The article highlighting stocks at 52-week lows ready to rebound may have caught the attention of investors looking for undervalued opportunities. With DFS being mentioned as one of the potential bounce-back candidates, investors may have been attracted to the stock, leading to increased buying pressure and a bullish movement.
• 3. Analyst Upgrades: The news of recent analyst upgrades and raised price targets for DFS may have instilled confidence in investors, signaling positive sentiment towards the company's future prospects. This positive outlook from analysts could have contributed to the bullish movement in the stock.
• Overall, despite the initial concerns raised by investigations, the combination of potential bargain opportunities and positive analyst sentiment likely drove the bullish movement in DFS stock today.

16.07.2023 - DFS Stock was up 5.0%

• DFS stock fell after the announcement of the resignation of its CEO, Roger Hochschild.
• The leadership change and the search for a permanent replacement may have caused uncertainty and investor concerns.
• The market reacted negatively to the news, leading to the bearish movement in DFS stock.
• The company's focus on enhancing compliance, risk management, and corporate governance may also be contributing factors to the market movement.

15.07.2023 - DFS Stock was up 6.7%

• The bearish movement in DFS stock today could be attributed to the following factors:
• 1. Counter Debit Frauds: The partnership between DFS and FICO to enhance fraud detection technology indicates a proactive approach to combating evolving frauds. However, the market may have reacted negatively to the news, possibly due to concerns about the prevalence of debit frauds and the potential impact on DFS's financial performance.
• 2. Market Volatility: The overall market conditions and investor sentiment can significantly influence stock movements. If there was a broader bearish sentiment in the market today, it could have contributed to the decline in DFS stock.
• 3. Profit-Taking: DFS has outperformed the market over the past 15 years, generating a solid average annual return. Investors may have decided to take profits and sell their holdings, leading to a bearish movement in the stock.
• 4. Lack of Positive Catalysts: The absence of any significant positive news or catalysts specific to DFS may have also contributed to the bearish movement. Without any fresh positive developments, investors may have chosen to sell their positions or remain cautious.
• Overall, the bearish movement in DFS stock today could be a result of a combination of factors, including concerns about debit frauds, market volatility, profit-taking, and the absence of positive catalysts.