AMERICAN EXPRESS CO. $65 (New York symbol AXP, Conservative Growth Portfolio, Finance sector; Shares outstanding: 951.0 million; Market cap: $61.8 billion; Price-to-sales ratio: 2.0; Dividend yield: 1.8%; TSINetwork Rating: Average; www.americanexpress.com) is one of the world’s largest issuers of payment cards, with 118.6 million cards in use across 130 countries.

Amex issues two types of cards: charge cards, which have no preset spending limit and must be paid in full each month; and traditional credit cards, which let users carry a balance.

The company is also a bank that accepts deposits and makes loans. It cuts its credit risk by mainly catering to clients with above-average incomes and good credit histories. In the first quarter of 2016, Amex wrote off just 2.0% of its U.S. loans compared to 2.3% a year earlier. Its international write-off rate fell to 2.1% from 2.4%.

Costco will soon drop Amex as the only credit card it accepts at its U.S. stores. The company now plans to sell its Costco loans for a $1 billion gain.

Amex is also spending more on marketing and promotions to offset the loss of Costco. Due partly to a $118 million, or 19.4%, jump in marketing costs, its earnings in the first quarter fell 6.6%, to $1.4 billion from $1.5 billion a year earlier. Earnings per share declined 2.0%, to $1.45 from $1.48, on fewer shares outstanding.

Revenue in the quarter rose 1.7%, to $8.1 billion from $7.95 billion, thanks to 6% higher spending by cardholders. If you exclude currency exchange rates, revenue gained 4%.

Amex continues to make progress with its restructuring, including cutting jobs and combining some smaller divisions. These moves should save $1 billion each year starting in 2017.

The stock has rebounded strongly from its February 2016 low of $51. It now trades at 11.6 times the $5.60 a share that Amex will likely earn this year. The $1.16 dividend yields 1.8%.

American Express is a buy.