Q: I am very pleased with my shares of Discover Financial Services but wonder whether the financial area is still a good place to be invested. Suggestions?

A: Its shareholders can concur with the advertising slogan: “It pays to Discover.”

Shares of Discover Financial recently had been up 27 percent this year. The company’s earnings more than doubled, to $649 million, in its third quarter, exceeding analyst estimates as summer card usage rose and higher gasoline prices boosted total volume.

Nonetheless, the economic and competitive pressures that affect its Discover credit card, debit card and Diners Club International businesses mean it can never grow complacent.

Among the positives, consumers have continued to use credit cards despite a weak economy and high unemployment. The firm’s delinquency rate for card loans of more than 30 days and charge-offs for cards both declined in the third quarter.

Discover was an industry pioneer in the cash rewards concept, and the number of merchants accepting the Discover Card continues to grow. In its annual Loyalty Engagement Index, Brand Keys Inc. this year named Discover the card industry’s leader in brand loyalty.

An investor deciding on the company’s stock should consider whether credit card industry results can remain robust. Also, some speculate that Discover could be purchased by a large competitor.

Consensus analyst opinion on shares of Discover is “buy,” according to Thomson Reuters, consisting of six “strong buys,” five “buys” and 10 “holds.” The company’s strong cash generation makes it easier to cope with economic and market volatility.

It offers online savings accounts, certificates of deposit and loans through its Discover Bank subsidiary and also operates the Pulse ATM/debit network. Its most recent acquisitions are Student Loan Corp. and Tree.com’s Home Loan Center.

Q: Is Fidelity OTC fund going to be able to keep up its returns?

A: It is a big fund providing investors with big returns.

Gavin Baker, an analyst and manager at Fidelity since 1999, has turned in remarkable results since he took over this fund in 2009. While his goal is to beat the volatile Nasdaq composite index, he uses restraint by paying attention to not only growth prospects but also fundamentals, stock price and momentum.

The $6.7 billion Fidelity OTC fund (FOCPX) was up 10 percent over a recent 12-month period and had a three-year annualized return of 22 percent. Both results ranked in the upper 2 percent among large growth funds.

“Fidelity OTC is for investors seeking technology stocks, though it does offer more diversity than that,” said Janet Yang, mutual fund analyst with Morningstar Inc. “While a smaller-cap and tech bias has provided head winds for this fund, other picks were skillfully selected and also turned out to be good.”

The fund has seen considerable manager turnover during the past decade, primarily because Fidelity has treated it like a “stepping stone” fund, where managers serve a tour of duty before moving on to larger Fidelity funds, she said. According to filings, manager Baker has between $100,000 and $500,000 of his own money invested in this fund.

The fund’s largest holdings recently included Apple Inc., Google Inc., Amazon.com Inc., Nvidia Corp., Cognizant Technology Solutions Corp., Rackspace Hosting Inc., Accretive Health Inc., Sprint Nextel Corp. and Vertex Pharmaceuticals.

This “no-load” fund requires a $2,500 minimum initial investment and has an annual expense ratio of 0.92 percent.

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