Discover The Value In Discover Financial

Discover Financial Services DFS's current trading price of $52.70 represents a 22 percent discount to Yahoo! Finance’s average analyst price target.

Discover Financial has a 10.12 price-to-earnings ratio, compared to P/Es of 27.31 and 28.35 for Visa Inc V and Mastercard Inc MA, respectively.
Discover Financial's dividend yield is 2.02 percent, higher than American Express Company AXP's 1.82 percent and nearly twice Visa’s 0.71 percent yield.
The company has had earnings surprises in 12 out of the past 15 quarters.

Discover Financial could be a good fit for investors looking for a play in financials following the recent interest rate announcement.

Even in the prevailing low-rate environment, three analysts raised their price targets an average of 4.7 percent following their Q1 earnings release.

Discover has already rebounded 2 percent from lows hit Thursday after the Federal Reserve Bank’s announcement that rates would stay put. Shares traded Friday at $52.64 two hours before the close.