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AmEx (AXP), Hilton Reward Travelers With Enhanced Card Benefits
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American Express Company (AXP - Free Report) recently collaborated with Hilton Worldwide Holdings Inc. (HLT - Free Report) to launch an enhanced version of the Hilton Honors American Express Business Card. The new card will provide benefits and up to $240 per annum credits on qualifying Hilton purchases. It will also have a reward structure for card members to earn Hilton Honors Bonus Points on their expenditures.
This move bodes well for American Express, as with this enhanced card, card members will gain by using their business expenditures to earn points for future Hilton stays. This collaboration builds on AXP’s 70-year-old partnership with Hilton, aiming to reward small and medium-sized businesses with enhanced travel experience. Travel and Entertainment comprised 25% of AXP’s total billed business, and it grew 9% year over year in the fourth quarter of 2023. Continued growth in travel should boost the company’s T&E business, thereby boosting the top line in the future.
The ulterior motive behind the latest move remains to incorporate new options within American Express’ card offerings, thus catering to the evolving needs of a global consumer and commercial customer base. Offers such as earning 5X Hilton Honors Bonus Points on purchases made with the card on the first $100,000 each year are likely to attract new clients as well as retain high-spending and creditworthy card members.
This new card follows the recently enhanced Hilton Honors American Express Aspire and Surpass cards, which were launched in October 2023 to cater to retail consumers. AXP often resorts to various incentives, such as Membership Rewards and Amex Offers programs, cash-back reward features, interest rates offered on deposits and participation in loyalty programs, as a means to boost card spending and enhance customer engagement. Moves like this should aid the company in achieving its 2024 revenue growth outlook in the range of 9-11%.
Shares of American Express have gained 39% in the past year compared with the industry’s 23.3% growth. AXP currently carries a Zacks Rank #2 (Buy).
The bottom line of AssetMark Financial outpaced estimates in two of the last four quarters and missed the mark twice, the average surprise being 0.8%. The Zacks Consensus Estimate for AMK’s 2024 earnings suggests an improvement of 13.5%, while the consensus mark for revenues suggests growth of 8.5% from the respective year-ago reported figures. The consensus mark for AMK’s 2024 earnings has moved 3.2% north in the past 60 days.
The bottom line of Piper Sandler outpaced estimates in each of the last four quarters, the average surprise being 34.4%. The Zacks Consensus Estimate for PIPR’s 2024 earnings suggests an improvement of 20.4%, while the consensus mark for revenues suggests growth of 10.4% from the respective year-ago reported figures. The consensus mark for PIPR’s 2024 earnings has moved 9.1% north in the past 60 days.
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AmEx (AXP), Hilton Reward Travelers With Enhanced Card Benefits
American Express Company (AXP - Free Report) recently collaborated with Hilton Worldwide Holdings Inc. (HLT - Free Report) to launch an enhanced version of the Hilton Honors American Express Business Card. The new card will provide benefits and up to $240 per annum credits on qualifying Hilton purchases. It will also have a reward structure for card members to earn Hilton Honors Bonus Points on their expenditures.
This move bodes well for American Express, as with this enhanced card, card members will gain by using their business expenditures to earn points for future Hilton stays. This collaboration builds on AXP’s 70-year-old partnership with Hilton, aiming to reward small and medium-sized businesses with enhanced travel experience. Travel and Entertainment comprised 25% of AXP’s total billed business, and it grew 9% year over year in the fourth quarter of 2023. Continued growth in travel should boost the company’s T&E business, thereby boosting the top line in the future.
The ulterior motive behind the latest move remains to incorporate new options within American Express’ card offerings, thus catering to the evolving needs of a global consumer and commercial customer base. Offers such as earning 5X Hilton Honors Bonus Points on purchases made with the card on the first $100,000 each year are likely to attract new clients as well as retain high-spending and creditworthy card members.
This new card follows the recently enhanced Hilton Honors American Express Aspire and Surpass cards, which were launched in October 2023 to cater to retail consumers. AXP often resorts to various incentives, such as Membership Rewards and Amex Offers programs, cash-back reward features, interest rates offered on deposits and participation in loyalty programs, as a means to boost card spending and enhance customer engagement. Moves like this should aid the company in achieving its 2024 revenue growth outlook in the range of 9-11%.
Shares of American Express have gained 39% in the past year compared with the industry’s 23.3% growth. AXP currently carries a Zacks Rank #2 (Buy).
Image Source: Zacks Investment Research
Other Stocks to Consider
Some other top-ranked stocks in the Finance space are AssetMark Financial Holdings, Inc. (AMK - Free Report) and Piper Sandler Companies (PIPR - Free Report) , each currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The bottom line of AssetMark Financial outpaced estimates in two of the last four quarters and missed the mark twice, the average surprise being 0.8%. The Zacks Consensus Estimate for AMK’s 2024 earnings suggests an improvement of 13.5%, while the consensus mark for revenues suggests growth of 8.5% from the respective year-ago reported figures. The consensus mark for AMK’s 2024 earnings has moved 3.2% north in the past 60 days.
The bottom line of Piper Sandler outpaced estimates in each of the last four quarters, the average surprise being 34.4%. The Zacks Consensus Estimate for PIPR’s 2024 earnings suggests an improvement of 20.4%, while the consensus mark for revenues suggests growth of 10.4% from the respective year-ago reported figures. The consensus mark for PIPR’s 2024 earnings has moved 9.1% north in the past 60 days.