From Nasdaq:

Discover Financial stock has seen a 14% gain YTD, aligning with its fair value estimate. It did not outperform the S&P 500 in 2023, and is expected to continue underperforming. Trefis’ High Quality Portfolio has consistently outperformed the S&P 500 and poses less risk.

In Q3 2023, Discover Financial reported a 17% increase in net revenues, but earnings missed the consensus. There was also a 34% decrease in adjusted net income due to $1.7 billion in provisions for credit losses. Despite this, the company’s 1st 9 months of 2023 reported an overall 24% y-o-y decline in adjusted net income.

Looking forward, Discover Financial’s revenues are forecast to reach $15.61 billion in FY2023, and a P/E multiple of just below 9x will lead to a valuation of $112.

The month-to-date and year-to-date returns for Discover Financial stock were 20% and 14% respectively in December 2023. Over the period from 2017-23, DFS saw a total return of 55%, while the S&P 500 had a total return of 113%. Trefis Reinforced Value Portfolio returned 9% and 40% in December 2023 and from 2017-23 respectively.



Read more: Up 14% YTD, What’s Next For Discover Financial Stock?