Forecast Of The Day: Discover Financial’s Discover Network Proprietary Volumes

+43.12%
Upside
96.50
Market
138
Trefis
DFS: Discover Financial Services logo
DFS
Discover Financial Services

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?

Relevant Articles
  1. What To Expect From Discover Financial Stock?
  2. Discover Financial Stock To Post Mixed Results In Q1?
  3. Forecast Of The Day: Discover’s Card Balance Outstanding
  4. Is Discover Financial Stock Attractive At the Current Level?
  5. Discover Financial Stock Has An 11% Upside Potential
  6. Is Discover Financial Stock Fairly Priced?

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