The Zacks Analyst Blog Highlights: American Express, MasterCard, Visa and Discover Financial Services - Press Releases

By Zacks Equity Research,

Shutterstock photo

For Immediate Release

Chicago, IL - January 20, 2012 - announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include American Express Co. ( AXP ), MasterCard Inc. ( MA ), Visa Inc. ( V ) and Discover Financial Services ( DFS ).

Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter:

Here are highlights from Thursday's Analyst Blog:

AmEx Makes Ties China's Lianlin

Yesterday, American Express Co. ( AXP ) (AmEx) announced its collaboration with China's mobile phone company - Lianlin Group - so that the latter can now use AmEx's Serve technology in China.

Serve is AmEx's next generation technology that aids eCommerce through the products and services that the mobile and card companies develop. Accordingly, through this partnership, Lianlin has acquired the licence to use AmEx's Serve.

The alliance is an extended relationship management between the two companies as AmEx has also made an equity investment in Lianlian Pay Inc., which is an overseas company of the Lianlian Group.

With the help of Serve, Lianlin can now empower itself with a new digital wallet, which will enable the Chinese company to help its 300 million mobile phone accounts to refill mobile minutes, pay bills and purchase products and services. Additionally, Lianlin's vast network of over 300,000 small business agents further allows both the companies to help penetrate Serve across Chinese markets.

Hence, Serve will drive AmEx and Lianlin's efficiencies as digital partners, thereby closely connecting its merchants with a high-speed payment solution, and consequently complying with the next generation needs. On the other hand, AmEx is expected to expand its eCommerce opportunities by extending its services in China besides accelerating cross-border payments.

While other global card giants are unable to penetrate successfully in rapidly and radically growing Chinese eCommerce market given the stringent fiscal and monetary policies in the country, AmEx has been able to make a significant advancement. In September last year, AmEx had also entered into a joint venture with Tencent Holdings Ltd., which has allowed AmEx to help provide cross-border purchases to Tencent's online payment unit - Tenpay.

Furthermore, AmEx also issues credit cards in China through Industrial and Commercial Bank of China, China International Trust and Investment Corporation, China Merchants Bank and Bank of China. Even the alliance with Lianlin attempts to be a well-fit in AmEx's operational and competitive growth.

Additionally, we believe these efforts are not only helping AmEx improve its operating leverage and reduce time-gap to reach out to its merchants but are also crucial for maintaining its competitive strength against arch rivals, such as MasterCard Inc. ( MA ), Visa Inc. ( V ) and Discover Financial Services ( DFS ), in the card industry. Hence, such collaborations in the growth markets and diversifying into eCommerce are crucial for AmEx in order to expand its revenue base.

Overall, we believe that the collaboration is expected to bolster the operating and competitive leverage for both Lianlin and AmEx and will be a positive step for their fundamental growth.

Currently, the shares of AmEx carry a Zacks Rank of #3, implying a short-term Hold and a long-term 'Neutral' stance.

Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: .

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today:

About Zacks is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leon Zacks. As a PhD from MIT Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at .

Visit for information about the performance numbers displayed in this press release.

Follow us on Twitter:

Join us on Facebook:

Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.

Media Contact
Zacks Investment Research

800-767-3771 ext. 9339

AMER EXPRESS CO ( AXP ): Free Stock Analysis Report
DISCOVER FIN SV ( DFS ): Free Stock Analysis Report
MASTERCARD INC ( MA ): Free Stock Analysis Report
VISA INC-A ( V ): Free Stock Analysis Report
To read this article on click here.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing Stocks
Referenced Stocks: AXP , DFS , MA , V

More from


Follow on:

Find a Credit Card

Select a credit card product by:
Select an offer:
Data Provided by