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Alliance Data’s (ADS) Unit Inks New Deal with Disney EMEA


Alliance Data Systems Corp.’s ADS Europe-based BrandLoyalty business, a program of the LoyaltyOne unit within its fold, recently inked a multi-year agreement with Disney EMEA. The deal will help the financial transaction service provider build a loyalty market across Europe, Middle East and Africa (EMEA) for Disney. This latest partnership is set to benefit both BrandLoyalty and Disney in key markets.

The new deal will thrive on an already strong and successful relationship between Alliance Data, an industry-leading data-driven marketing and loyal solutions provider, and Disney EMEA. This association has in turn helped Alliance Data’s unit to witness a highly popular Instant Loyalty Promotions based on the famous Disney characters and franchises which were successfully unveiled and implemented in worldwide supermarkets. Notably, the partnership is expected to run from 2018 to 2021.

BrandLoyalty has successfully met the needs and expectations of its clients by developing instant changes in consumer behavior through promotional campaign-driven loyalty programs. This has made the affiliate a leader in transactional and emotional loyalty.

BrandLoyalty has managed to foster real-time customer engagement in both traditional and digital channels by creating short-term promotional loyalty programs ranging between 12-20 weeks.

It has been able to develop tailor-made promotional programs to aid the unit engage key client customer segments and propel the marketing return on investment. Hence, this contract will enable BrandLoyalty to expand its retail consumer penetration of globally recognized brands like Disney and Marvel to name a few. This is feasible via its traditional and digital mobile promotional campaign-driven loyalty programs.

Alliance Data Systems remains well-positioned for growth from the significant opportunities owing to current trends in consumer-based businesses, thereby shifting their marketing spends to data-driven marketing strategies.

Interestingly, shares of Alliance Data rallied 26.94% in the last one year, outperforming the Zacks categorized Financial Transaction Services industry’s increase of 20.85%. We expect solid top-line growth, robust capital position and strategic initiatives to accelerate the company’s growth that will continue to drive the stock higher in the near term.

Zacks Rank

Currently, Alliance Data carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Stocks to Consider

Some better-ranked stocks from the finance sector are Assurant, Inc. AIZ, Cigna Corporation CI and Old Republic International Corporation ORI. Each stock holds a Zacks Rank #2 (Buy).

Assurant offers risk management solutions for housing and lifestyle markets worldwide. The company has delivered positive surprises in three of the last four quarters with an average beat of 6.82%.

Cigna provides insurance plus related products and services in the United States and internationally. The company delivered positive surprises in three of the last four quarters with an average beat of 1.35%.

Old Republic deals in insurance underwriting and related services business, primarily in the U.S. and Canada. The company delivered positive surprises in two of the last four quarters with an average beat of 12.71%.

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