Forecast Of The Day: Discover Financial’s Discover Network Proprietary Volumes
What?
Discover Financial’s (NYSE: DFS) Discover Network Proprietary Volumes – which is the total dollar value of all the purchases made on Discover credit cards – declined marginally from around $146 billion in 2019 to about $143 billion in 2020. However, Trefis expects the metric to rise to about $179 billion in 2021 and $187 billion in 2022.
Why?
- Discover Financial Stock Topped The Estimates In Q2, Where Is It Headed?
- Discover Financial Stock Is Beating S&P500 In YTD Returns, What To Expect From Q2 Results?
- Up 8% YTD, What To Expect From Discover Financial Stock In Q1?
- Up 14% YTD, What’s Next For Discover Financial Stock?
- Discover Financial Stock Is Undervalued
- Discover Financial Stock Is Fairly Priced At The Current Levels
While the metric saw a dip in 2020 due to the Covid-19 pandemic, which impacted consumer spending, the economic recovery following the lockdowns, coupled with a growing merchant network are likely to help Discover.
So What?
However, we think the projected growth is fully priced into Discover stock, which remains up by almost 50% year-to-date. We value DFS stock at $135 per share, roughly in line with the current market price.
See Our Complete Analysis For Discover Financial
What if you’re looking for a more balanced portfolio instead? Here’s a high-quality portfolio that’s beaten the market since 2016
See all Trefis Price Estimates and Download Trefis Data here
What’s behind Trefis? See How It’s Powering New Collaboration and What-Ifs For CFOs and Finance Teams | Product, R&D, and Marketing Teams