AmEx (AXP) Ties Up to Address Financial Goals of Card Members
American Express Company AXP recently collaborated with one of the most renowned investment management companies in the world, Vanguard, to introduce a financial advice service to exclusively benefit eligible American Express U.S. Consumer Card Members. Named INVEST for Amex by Vanguard, the service requires a minimum investment of $10,000 coupled with a 0.50% yearly gross advisory fee. As a great move for first-time enrollees, advisory fees will be waived off for the initial 90 days.
The new service has been devised by combining Vanguard's proven digital financial planning and investment management prowess with the differentiated rewards of American Express. This, in turn, is expected to offer a tailored investment strategy for clients and assure enhanced management of their portfolios built with the help of cost-effective and diversified Vanguard ETFs.
Customers availing of the service will benefit from the digital experience and consultation with Vanguard financial advisors, whose advice is likely to help clients in achieving their financial goals and be cautious regarding financial pitfalls. There are also lucrative rewards associated with INVEST for Amex by Vanguard.
Initiatives similar to the latest one highlight American Express’ sincere efforts to upgrade card offerings and cater to the evolving needs of Card Members. AXP, whose card offerings usually tend to ease payments related to daily needs, has put its best foot forward this time to bring about better financial outcomes for its clients through the newly launched service. New features are expected to be incorporated into the service in the days ahead.
Vanguard seems to be the apt partner for complementing American Express’ endeavor owing to the fact that the former boasts of a sound history of extending financial planning and wealth management services directly to its clients. With an aim to minimize costs and complexities for investors, some of the advice services launched by Vanguard to aid in better financial outcomes include Vanguard Personal Advisor Services (launched in 2015) and Vanguard Digital Advisor (rolled out in 2020).
With the card-issuing business remaining an important source of revenues for American Express, initiatives to upgrade card offerings are expected to continue contributing to AXP’s top-line growth.
American Express operates a global proprietary card-issuing business through its Global Consumer Services Group (“GCSG”) and Global Commercial Services (“GCS) segments. AXP provides a diversified suite of card products, rewards and services to a wide consumer and commercial customer base globally. The integrated payments company has pursued several buyouts and partnerships in the past, which were aimed at solidifying its digital capabilities and offering increased card locations to its Card Members.
Shares of American Express have gained 19.1% in a year compared with the industry’s growth of 1%. AXP currently carries a Zacks Rank #3 (Hold).
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Stocks to Consider
Some better-ranked stocks from the finance space are Virtu Financial, Inc. VIRT, Vinci Partners Investments Ltd. VINP and Primis Financial Corp. FRST. While Virtu Financial and Vinci Partners sport a Zacks Rank #1 (Strong Buy), Primis Financial carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The bottom line of Virtu Financial surpassed estimates in three of the trailing four quarters and missed once, the average surprise being 24.76%. The Zacks Consensus Estimate for VIRT’s 2022 earnings has moved 2.7% north in the past seven days. Virtu Financial has a VGM Score of B.
The bottom line of Vinci Partners outpaced estimates in three of the last four quarters and met once, the average surprise being 13.32%. The Zacks Consensus Estimate for VINP’s 2022 earnings suggests an improvement of 40.8%, while the same for revenues suggests growth of 29.4% from the corresponding year-ago reported figures. of the consensus mark for Vinci Partners’ 2022 earnings has moved 11.5% north in the past 30 days.
Primis Financial delivered a trailing four-quarter earnings surprise of 27.81%, on average%. The Zacks Consensus Estimate for FRST’s 2022 earnings has moved 1% north in the past 60 days. Primis Financial has a Value Score of B.
Shares of Virtu Financial and Vinci Partners have rallied 16.8% and 11.3%, respectively, in a year. Meanwhile, Primis Financial stock has declined 9.1% at the same time.
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