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.
- What To Expect From Discover Financial Stock?
- Discover Financial Stock To Post Mixed Results In Q1?
- Forecast Of The Day: Discover’s Card Balance Outstanding
- Is Discover Financial Stock Attractive At the Current Level?
- Discover Financial Stock Has An 11% Upside Potential
- 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.
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.
What if you’re looking for a more balanced portfolio instead? Here’s a high-quality portfolio that’s beaten the market since 2016