NEW YORK (TheStreet) -- American Express Co. (AXP) could see higher revenue in the years ahead as expanded merchant relationships are convincing customers to swipe their AmEx more often. That, along with an improving economy, technological innovations, and a robust policy of returning cash to shareholders, could send AmEx shares higher in the coming year, Barron's reports.
While its peers have seen their card revenue fall by about 2% a year, on average, since 2010, AmEx revenue has grown at a 6% annual rate in that period, the company says.
For several investors and analysts, the promise of accelerated spending growth is reason enough to buy the stock, according to Barron's.
Shares of American Express are slightly lower at $87.27 in mid afternoon trade.
TheStreet Ratings team rates AMERICAN EXPRESS CO as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate AMERICAN EXPRESS CO (AXP) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, growth in earnings per share, increase in net income and solid stock price performance. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."