Jim Cramer Says You Should Buy American Express (AXP)

Yahoo

01-05-2025

We recently published a list of . In this article, we are going to take a look at where American Express Company (NYSE:AXP) stands against other stocks that Jim Cramer discusses.
Jim Cramer in a latest program on CNBC talked about the latest signs of de-escalation in trade wars between the US and China and told investors that even bear market rallies could be a positive sign. Cramer, however, believes the US government has yet to give any clarity on its policies on China.
'There's a great misunderstanding about how real recoveries get started. They always start as bear market rallies, for heaven's sake. They're rarely based on hard facts. When you get this kind of rally, it doesn't happen because someone gave you the green light to start buying. You don't get a statement from the president that the trade war is over and everything's back to normal.'
In addition to positive reports on the US-China tariff front, Cramer also mentioned the latest reports on President Trump's stance on Fed Chair Jerome Powell, saying that the possibility of Trump firing the central bank chief seems to be 'off the table.'
READ ALSO: 7 Best Stocks to Buy For Long-Term and 8 Cheap Jim Cramer Stocks to Invest In.
For this article, we picked 10 stocks Jim Cramer recently talked about during his latest programs on CNBC. With each stock, we have mentioned the number of hedge fund investors. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Number of Hedge Fund Investors: 62
A caller recently asked Jim Cramer whether she should hold and buy more American Express Co (NYSE:AXP). Here is what Cramer said:
'You do because Stephen Squeri (AXP CEO) is incredible. I think it's one of the great franchises of all time, and I've studied its 150 years. I think these guys—this is one of America's great companies.'
GreensKeeper Asset Management stated the following regarding American Express Company (NYSE:AXP) in its Q1 2025 investor letter:
'Our second largest contractor in the quarter was American Express Company (NYSE:AXP). AXP finished 2024 on a strong note, with earnings growing 23% for the year. While provisions for credit losses increased, reflecting a more cautious credit outlook, net write-off rates remained below historical averages, indicating strength in the underlying credit quality. AXP remains well-capitalized, and its affluent customer base is expected to fare better than the general economy in the coming months. However, the stock was not cheap, and we trimmed our position in Q1.'
Overall, AXP ranks 7th on our list of stocks that Jim Cramer discusses. While we acknowledge the potential of AXP as an investment, our conviction lies in the belief that under the radar AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than AXP but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.