We have downgraded our recommendation on Discover Financial Services (NYSE:DFS) to Neutral based on a weak momentum in the earnings outlook. The company reported third-quarter 2011 earnings per share of $1.18, significantly ahead of both the Zacks Consensus Estimate of 91 cents and 47 cents recorded in the year-ago quarter.
Discover’s credit card sales volume has been witnessing modest improvement owing to improved consumer spending and credit quality trends. In the first nine months of 2011, … [visit site to read more] or compare Credit Card Rewards and Best Credit Cards