AmEx (AXP) to Assist Small Businesses With Virtual Card Solution

American Express Company
AXP recently
announced that it had collaborated with American Express Global
Business Travel in a bid to aid small and mid-sized firms in
managing their expenses efficiently. This will provide small
business owners with a solution to tackle the inefficient handling
of expenses.

This move bodes well for American
Express as this new integration will enhance its offerings in the
Commercial Services space. The company has promising prospects as
it continuously strengthens its foothold in commercial payments by
differentiating its card value propositions. Due to the company's
value-enhancing initiatives, it continues to experience growth in
new accounts and higher retention levels. This integration is
expected to lure more customers to AXP's Commercial Services
business, which earns the majority from non-interest revenues.

This new initiative will enable
small business owners to issue virtual cards for their personnel
through Amex GBT Neo1, an expense management platform. Once U.S.
card members are enrolled, they can add the relevant card account
to the platform. This way, businesses can keep track of expenses
with the help of a procurement platform and an expense system.
Companies can better view and control employee expenditures, such
as purchasing with virtual cards, business travel booking and
budgeting.

Manual expense management process
consumes a significant amount of time and resources, making it
difficult for small and mid-sized companies to bear such expenses.
Companies can set spending controls with the automation of the
expense management process and benefit from reduced complexity.
This is a win-win situation for AXP as this enhances its offerings,
making them more attractive. Moves like these should help AXP
achieve its long-term earnings per share (EPS) growth target in the
mid-teens. AXP expects total revenues to grow between 9% and 11% in
2024. Looking ahead, the company anticipates a continuous revenue
growth trajectory, targeting more than 10% in the long run.

Price Performance

Shares of American Express have
gained 30.7% in the past three months compared with the
industry's
growth of 11.5%.

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Source: Zacks Investment Research

Zacks Rank & Other Key
Picks

American Express currently carries
a Zacks Rank #2 (Buy).

Some other top-ranked stocks from
the finance sector are
Cboe Global Markets
CBOE,
Coinbase Global
COIN and
Assurant, Inc.
AIZ.

Cboe Global delivered a trailing
four-quarter average earnings surprise of 4.1%. The Zacks Consensus
Estimate for CBOE's 2024 earnings suggests a year-over-year rise of
6.4%. It presently carries a Zacks Rank #2. You can see

the complete list of today's Zacks #1 Rank (Strong Buy)
stocks here

.

Coinbase has an excellent track
record of beating earnings estimates in each of the last four
quarters, the average being 377.6%. The Zacks Consensus Estimate
for COIN's 2024 EPS indicates a year-over-year increase of 173%. It
currently sports a Zacks Rank #1.

Estimates for Assurant's 2024 EPS
indicate a year-over-year increase of 3.4%. The company beat
earnings estimates in each of the past four quarters, the average
being 42.2%. It presently carries a Zacks Rank #2.

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American Express Company (AXP): Free Stock Analysis Report

Assurant, Inc. (AIZ): Free Stock Analysis Report

Cboe Global Markets, Inc. (CBOE): Free Stock Analysis Report

Coinbase Global, Inc. (COIN): Free Stock Analysis Report

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