What's Going On With Discover Financial Services (DFS) Stock?

Traders and investors are watching for Discover Financial Services DFS fourth-quarter financial results, confirmed for Wednesday’s after hours session.

With earnings per share of $3.69 and revenue surpassing expectations at $4.453 billion, Discover in the third quarter benefitted from increased net interest margins and steady loan growth.

What To Know From Q3: Credit card loans rose by 3%, and personal loans grew by 9%, contributing to an overall 4% year-over-year loan increase. The company's strategic move to reduce its private student loan portfolio is expected to continue impacting results, but the improved credit profile and net interest income should provide a boost.

While the delinquency rates showed slight increases in both 30+ day and 90+ day categories, Discover’s risk management initiatives remain a priority. The company’s Payment Services division, although stable, could see growth from debit transaction volume as PULSE volume increased by 14%.

As Discover wraps up its student loan portfolio sale, the company could be well-positioned for growth, bolstered by its robust digital banking business and expanding margins.

Read Also: Tesla Struggles in Europe As New Registrations Fall 13% In 2024, Driving First Global Delivery Decline In Years

How To Buy DFS Stock

By now you're likely curious about how to participate in the market for Discover Financial – be it to purchase shares, or even attempt to bet against the company.

Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy ‘fractional shares,' which allows you to own portions of stock without buying an entire share. For example, some stock, like Berkshire Hathaway, can cost thousands of dollars to own just one share. However, if you only want to invest a fraction of that, brokerages will allow you to do so.

If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to ‘go short' a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.

According to data from Benzinga Pro, DFS has a 52-week high of $189.65 and a 52-week low of $97.70.