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Discover (DFS) Moves 5.5% Higher: Will This Strength Last?
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Discover (DFS - Free Report) shares ended the last trading session 5.5% higher at $94.42. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 14% loss over the past four weeks.
Discover Financial's stock is gaining from the rise in new account growth and resultant contribution to loan growth amid the ongoing recovery in the digital banking and payment services space. The jump follows a massive industry-wide panic selling, which made financial services stocks attractive again. Further, the move followed a recent filing, which highlights the company's improving credit card delinquency rate.
This credit card issuer and lender is expected to post quarterly earnings of $3.77 per share in its upcoming report, which represents a year-over-year change of -32.1%. Revenues are expected to be $3.14 billion, down 12.4% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Discover, the consensus EPS estimate for the quarter has been revised 0.8% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on DFS going forward to see if this recent jump can turn into more strength down the road.
Discover belongs to the Zacks Financial - Consumer Loans industry. Another stock from the same industry, Ally Financial (ALLY - Free Report) , closed the last trading session 1.8% higher at $32.82. Over the past month, ALLY has returned -16.6%.
Ally Financial's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.95. Compared to the company's year-ago EPS, this represents a change of -16.3%. Ally Financial currently boasts a Zacks Rank of #4 (Sell).
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Discover (DFS) Moves 5.5% Higher: Will This Strength Last?
Discover (DFS - Free Report) shares ended the last trading session 5.5% higher at $94.42. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 14% loss over the past four weeks.
Discover Financial's stock is gaining from the rise in new account growth and resultant contribution to loan growth amid the ongoing recovery in the digital banking and payment services space. The jump follows a massive industry-wide panic selling, which made financial services stocks attractive again. Further, the move followed a recent filing, which highlights the company's improving credit card delinquency rate.
This credit card issuer and lender is expected to post quarterly earnings of $3.77 per share in its upcoming report, which represents a year-over-year change of -32.1%. Revenues are expected to be $3.14 billion, down 12.4% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Discover, the consensus EPS estimate for the quarter has been revised 0.8% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on DFS going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Discover belongs to the Zacks Financial - Consumer Loans industry. Another stock from the same industry, Ally Financial (ALLY - Free Report) , closed the last trading session 1.8% higher at $32.82. Over the past month, ALLY has returned -16.6%.
Ally Financial's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.95. Compared to the company's year-ago EPS, this represents a change of -16.3%. Ally Financial currently boasts a Zacks Rank of #4 (Sell).