American Express (AXP) Unveils Over US$2,000 in New Business Platinum Card Benefits
We've identified 1 possible red flag with American Express and understanding the impact should be part of your investment process.
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The recently enhanced benefits for American Express's Business Platinum Card may act as a stabilizing factor amidst broader market volatility, like the deceleration in airline spending and rising reward expenses discussed in the narrative. Over the past five years, American Express's total shareholder return, combining share price and dividends, was 243.60%, underscoring its longer-term performance. In contrast, during the past year, American Express underperformed the US Consumer Finance industry, which returned 27%, though it outpaced the broader US Market return of 10%.
These card enhancements could potentially impact revenue and earnings forecasts by bolstering customer loyalty and spending, supporting the company's diversified revenue base. The share price movement, with a current price of US$310.65 compared to a price target of approximately US$318.02, reflects a modest discount of about 2.37%. This indicates a market recognition of the company's efforts to support stable earnings growth. However, the news may not fully offset the risks outlined in the bearish analyst expectations, which see revenue growth slowing and margins compressing due to external pressures. The market consensus shows varying valuations, highlighting the importance of evaluating American Express's potential within the broader economic context.
Upon reviewing our latest valuation report, American Express' share price might be too pessimistic.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include AXP.
This article was originally published by Simply Wall St.
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"As a distinguished leader who helped shape the U.S. financial regulatory framework, as well as the global financial system, he will add invaluable perspectives to American Express." Mr. Wallace has served as the President and Chief Executive Officer of Colgate-Palmolive Company (Colgate-Palmolive), a worldwide consumer products company, since 2019 and Chairman of its Board of Directors since 2020, after being elected to the Board of Directors in 2019. Mr. Squeri continued "Noel has extensive leadership experience driving the growth and transformation of large-scale business operations and global consumer brands. His international operational acumen, and in-depth branding and marketing expertise will be tremendous assets to support our company's long runway for growth." Mr. Quarles will join the Board's Nominating, Governance, and Public Responsibility Committee and Risk Committee. 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ABOUT AMERICAN EXPRESSAmerican Express (NYSE: AXP) is a global payments and premium lifestyle brand powered by technology. Our colleagues around the world back our customers with differentiated products, services and experiences that enrich lives and build business success. Founded in 1850 and headquartered in New York, American Express' brand is built on trust, security, and service, and a rich history of delivering innovation and Membership value for our customers. With over a hundred million merchant locations across our global network, we seek to provide the world's best customer experience every day to a broad range of consumers, small and medium-sized businesses, and large corporations. For more information about American Express, visit and Source: American Express Company Location: Global View source version on Contacts Media: Amanda Miller, +1.408.219.0563Deniz Yigin, +1.332.999.0836Investors/Analysts: Kartik Ramachandran, +1.212.640.5574Amanda Blumstein, +1.212.640.5574 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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