The data from SimplyWall St. a site that offers financial data and analysis, shows that Discover Financial Services has been outperforming the Consumer Finance industry in terms of earnings growth, with an average annual rate of 16.6% versus 7.6%. The company has also been increasing its revenues at an average rate of 10.6% per year. Its return on equity is 28.3%, and its net margins are 35.2%.
Discover Financial Services’ debt-to-equity ratio is 146.3%, which means its total debt of $20.3 Billion exceeds its total shareholder equity of $13.9 Billion, as shown by the data from SimplyWall St.. The company has $138.1 Billion in total assets and $124.2 Billion in total liabilities.
The market capitalization of Discover Financial Services stock is $26.692 Billion and the total revenue is $15.20 Billion. Moreover, the stock’s basic EPS is $14.43 and the Price-to-earnings ratio is 7.10. Moreover, the average volume is 20.059K and the current volume is 79.623K, the current volume is above average volume.
Moreover, the stock has not done well this month, decreasing by 9.01% but it has surged by 3.14% in the last six months. Discover Financial Services (NYSE: DFS) stock has a positive year-to-date return of 6.39% and a 1-year return of 3.04%.
Technical Analysis of DFS Stock Price in 1-D Time Frame
The price action shows that Discover Financial Services (NYSE: DFS) price has been in a downtrend for two months, falling by 24% from $119.19 to $90.74, making lower lows and lower highs.
However, from the $90.74 support level, the DFS stock price has reversed and started an uptrend, making higher highs and lower lows and rising by 35% since March 27th. The DFS price is currently trading at $105.11 after opening with a large gap down.
Moreover, on examining the previous price pattern, it seems that the DFS stock price is forming an ascending broadening wedge pattern, which is a bearish reversal pattern. This means that the DFS price may rise in the short term to the next resistance levels, but in the long term, DFS stock may fall back while completing the pattern formation.
Therefore, this suggests that if the DFS price faces more pressure from the bears, it could drop to or below the nearest support levels at $94.90 and $87.49.
On the other hand, if the DFS price maintains the current level, it could climb to the resistance levels of $115.16 and $123.34.
At the time of publishing, Discover Financial Services (NYSE: DFS) is trading below the 20, 50, 100, and 200-day EMAs (exponential moving average), which are rejecting the Discover Financial Services stock price trend. Hence, DFS stock price is expected to move downwards giving bearish signals over the daily time frame chart.
The current value of RSI is 34.41 points. The 14 SMA is above the median line at 61.36 points which indicates that the price is bearish as the RSI line took rejection from the 14 SMA line.
The MACD line at 0.1145 and signal line at 1.93 are above the zero line and a bearish crossover was observed in the MACD oscillator which signals more bearishness for the DFS share Price.
Summary
Discover Financial Services. (NYSE: DFS) shows that the investors and traders of the stock are bearish on the 1-D time frame. The price action shows a bearish outlook at the time of publishing. The technical parameters of the Discover Financial Services stock price also support the bearish trend. The major indicators MACD, RSI, and EMA are giving negative signals and imply that the downtrend may continue in DFS stock price.
Technical Levels
- The nearest support levels: $94.90 and $87.49.
- The nearest resistance levels: $115.16 and $123.34.
Disclaimer
In this article, the views and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.
Source: https://www.thecoinrepublic.com/2023/07/22/dfs-stock-price-predictionis-dfs-heading-to-new-low/