Latest news with #AmericanExpressCompany
Yahoo
21-05-2025
- Business
- Yahoo
American Express Company (AXP): A Bull Case Theory
We came across a bullish thesis on American Express Company (AXP) on Substack by Max Dividends and Serhio MaxDividends. In this article, we will summarize the bulls' thesis on AXP. American Express Company (AXP)'s share was trading at $296.17 as of May 20th. AXP's trailing and forward P/E were 20.68 and 19.57 respectively according to Yahoo Finance. Pixabay/Public Domain In a volatile 2025 market environment, American Express (AXP) has emerged as a premier dividend growth stock, blending its 175-year legacy with a future-focused strategy that appeals to both institutional investors and long-term shareholders. Distinguished by its integrated business model and premium customer base, AmEx ranks fourth globally in transaction volume behind UnionPay, Visa, and Mastercard but stands apart with its focus on high-margin, recurring revenue streams rather than riskier lending. This approach has earned the endorsement of Warren Buffett's Berkshire Hathaway, which holds a 21% stake, and supports the company's reputation for operational resilience and consistent capital returns. While its dividend yield currently stands at 1.1%, AmEx has delivered a 120% cumulative dividend increase over the past decade and raised its payout by 17% in 2025. Complementing this shareholder-friendly policy is an aggressive buyback program that has reduced shares outstanding by 30% since 2015, further enhancing per-share value. In 2024, AmEx reported $60.5 billion in revenue and $9.1 billion in net income, with a return on equity surpassing 30%, and its 2025 outlook calls for 8%–10% revenue growth and EPS between $15.00 and $15.50. A key growth driver is the expanding influence of Millennials and Gen Z, who now represent 42% of its customer base and 75% of new premium card acquisitions, fueling spending in travel and dining—areas up 18% year-over-year. AmEx continues to adapt through merchant expansion, digital innovation, and flexible payment tools like 'Plan It,' helping to fend off fintech and BNPL competition. With strong institutional backing and bullish analyst sentiment, AmEx offers both dependable income and long-term upside potential. Also, check out what we found about Visa (V). American Express Company (AXP) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 71 hedge fund portfolios held AXP at the end of the fourth quarter which was 62 in the previous quarter. While we acknowledge the risk and potential of AXP as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. 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 the cheapest AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey. 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
Yahoo
09-05-2025
- Business
- Yahoo
Is American Express Company (AXP) the Best Dow Stock?
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 Dow stocks. The Dow Jones Industrial Average is a benchmark index of the top 30 companies in the US. It represents the strength of the US economy and carries great historical significance as well. It also acts as a reference point for analysts and investors. However, not all stocks within this elite group of companies perform equally. While some thrive on innovation and economic boom, others struggle due to various setbacks and economic trends. We decided to break down the index and find out the best and worst stocks, looking at what was making them perform unexpectedly this year. In order to come up with our ranking of the best and worst Dow stocks, we first assigned a rank to each stock based on the number of hedge funds holding the stock. We then looked at the short interest in each stock and assigned the top rank to the company with the least short interest. We then combined the two ranks to see which stock was the best on average. The list is in ascending order, with the best stock taking the number one spot. 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 (). A close-up view of a payment terminal, capturing the sophistication of a payment Interest as of Apr 30, 2025: 1.19% American Express Company (NYSE:AXP) is an integrated payments company. The company operates in International Card Services, U.S. Consumer Services, Global Merchant and Network Services, and Commercial Services segments. Its products and services consist of charge card, network services, credit card, banking, travel and lifestyle services, and expense management products and services. The firm recently completed its acquisition of Center, a software company that helps manage expenses for small and medium-sized businesses. This acquisition will merge American Express Company's (NYSE:AXP) corporate and small business cards with the Center's expense management technology. With this integration, experiences and value for commercial customers will be improved. The company has also reaffirmed its full-year guidance for 2025. As per the guidance, management anticipates revenue growth of 8% to 10% along with the EPS ranging between $15 to $15.50. Management highlighted that these estimates assume a peak unemployment rate of 5.7%. CEO Stephen Squeri mentioned that early Q2 spending trends are reflecting first-quarter levels in all spending categories and customer segments. CFO Christophe Le Caillec highlighted consistency in consumer spending trends and credit performance. Overall, AXP ranks 18th on our list of best and worst Dow stocks. While we acknowledge the potential of AXP as an investment, our conviction lies in the belief that some 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. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. 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
Yahoo
02-05-2025
- Business
- Yahoo
American Express Company (AXP): Jim Cramer Says Consumers Are ‘On Fire' — 'This Is Tremendous Execution'
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 recently discussed. During the most recent episode of Mad Money, Jim Cramer revisited the recent turbulence in artificial intelligence stocks, three months after the emergence of DeepSeek, a Chinese AI firm that initially rattled markets. He noted that despite the broad pullback in the sector, many of the fears triggered by DeepSeek's debut have not materialized, which has led to a reconsideration of the panic that followed. 'Three months ago, January 23rd is a day that will live in artificial intelligence infamy. That's when we learned that a Chinese firm called DeepSeek had figured out a way to train high quality generative AI models using far less hardware. They claim their hardware costs were around $6 million versus $80 to $100 million for their enormous American competitors.' READ ALSO: and . The announcement sent shockwaves through the market. Cramer recalled how NVIDIA saw its stock fall sharply over just two trading sessions. The market reaction spread quickly beyond and hit other companies tied to data center infrastructure, which eventually pulled down the broader Nasdaq. However, Cramer noted that the company then revealed plans to build $500 billion worth of AI infrastructure in the United States over the next four years. Cramer noted that initially, it seemed to signal a renewed sense of stability. But soon after, the administration imposed a ban on selling AI chips to China, which forced the GPU kingpin to write down $5.5 billion tied to that entire initiative. Even so, Cramer emphasized that the company's core business remained strong. 'We understand that they're basically sold out for the year, even as they can only sell their best stuff in the United States and the 18 friendly countries.' Cramer attributed the export restrictions to a policy from former President Biden, one that President Trump has not reversed. Despite the geopolitical constraints, Cramer stressed that demand for the company's technology is still overwhelming. He argued that the stock never should have experienced such a steep drop in the first place. He added: 'Even with the trade war, the AI infrastructure theme seems totally back on track. In fact, it never left the track to begin with.' For this article, we compiled a list of 12 stocks that were discussed by Jim Cramer during the episode of Mad Money on April 30, 2024. We then calculated their performance from April 30th, 2024, market close to April 29th, 2025, market close. We have also included the hedge fund sentiment for the stocks, which we sourced from Insider Monkey's Q4 2024 database of over 900 hedge funds. The stocks are listed in the order that Cramer mentioned them. Please note that this article mentions Jim Cramer's previous opinions and may not account for any changes to his opinions regarding the stocks that are mentioned. It is primarily an examination of how his previously provided opinions have panned out. 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). A close-up view of a payment terminal, capturing the sophistication of a payment Express Company (NYSE:AXP), the global payments and credit card giant, was the focus of a segment based on its investor day and a subsequent interview with Stephen Squeri, the company's CEO. Cramer praised the company's exceptional performance at the time, saying: 'A week and a half ago American Express reported a breathtakingly great quarter and since then, the stock's rallied about 8%. Credit quality is strong, people are spending big, especially on travel, and the company keeps hitting its ambitious long-term growth targets. Very impressive. […] The company's shares have done well since, climbing by 11.76% over the past year. The host of Mad Money gave his thoughts on the stock again on the 17th of April and had this to say: '[On AXP's positive tone about the consumer] Better than that. Uh, I am talking about numbers which by the way include, and we've got first twelve days of this month. Steve Squeri going over things, you're talking about, restaurant spending up 8%, lodging up 6%, goods up 7%, card membership, obviously more and more tremendous numbers have increased. 3.4 million. David, this is as good a quarter if you had to say anything, you would say that the consumer is on fire actually. Really spending a lot. Now I think to keep with leitmotif of novels, uh, Fitzgerald did say in the short story The Rich Boy, the rich are different from you and me. Of course, Hemingway then came back and said yeah they have more money. But this is a Gen X, Gen Z, Millennial explosion. People love the card. I am, I got, the only thing that was not so good was the airlines, it's not that they matter. Because I gotta tell you, people are feeling good according to this. I mean President Trump could say you know what hey I told you, look how good everybody's feeling. So I mean stock was up six at one point. . .but I will just say that Steve Squeri is one hell of an executive, and these are really great numbers. And a lot of this is just tremendous execution on the part of this company.' Overall, AXP ranks 8th on our list of stocks that Jim Cramer recently discussed. While we acknowledge the potential of AXP as an investment, our conviction lies in the belief that some 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. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
02-05-2025
- Business
- Yahoo
Is American Express Company (AXP) the Best Dow Stock for the Next 12 Months?
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 best and worst dow stocks for the next 12 months. The Dow Jones Industrial Average (DJIA), or the Dow, is a price-weighted index that has long been seen as a barometer of the health of the U.S. economy. After touching all-time highs in late November 2024, the index has corrected nearly 7% in 2025 (as of April 23) and is down 12% from its highs. Rightly so, the correction reflects several unfavourable developments, including economic uncertainties and geopolitical tensions weighing on economic growth. The market is expected to remain volatile as the trade and other aspects of the US administration's policy agenda play out. Amid this volatility, based on the potential for share price appreciation in the next 12 months, we have created a selection of the best and worst Dow stocks from the 30 Dow constituent stocks. If we analyse its trackable history from 1899, the Dow has fallen 7% or more on a single day twenty times. Of those, only seven occurred after the year 2000, and the 5.5% decline on April 5, 2025, doesn't count as one of those seven, or not even in the historical top twenty. So, technically, this correction was not as severe as earlier. From corrections post 2000, the sharp declines when Covid-19 struck were the most noticeable – Dow fell 7.8%, 10%, and 12% on 9, 12, and 16th March, respectively, and saw further significant declines in that year. That said, the current period remains one of the most confusing times for market participants, even for the larger players in the equity market, who remain uncertain about their estimates for the broader markets, such as the Dow. In a recent interview, Lauren Goodwin, Chief Market Strategist at New York Life Investments, emphasized that the fundamental picture remains cloudy and investors are still looking for clarity in macroeconomic fundamentals. Despite some positive economic data recently, policy uncertainty is limiting visibility. As more data is released, she believes markets are entering a sustained period of elevated volatility across equities and fixed income. In these testing times, investors should examine fundamentals more critically, preferring Dow stocks with earnings resilience, clear competitive advantages, and exposure to long-term, secular growth themes. On April 28, Stephanie Link, Hightower Advisors' chief investment strategist, shared her positive outlook on the stock market in an interview on CNBC. With major tech companies, consumer, and financial companies set to announce results, she believes that if corporate earnings remain strong, the recent market rebound could continue. Since early April, the market has recovered significantly, and she attributed the rally to better-than-expected profit margins and steady corporate performance. Although the prominent tech names aren't cheap in terms of valuation, she views the recent declines as long-term buying opportunities. While markets may remain volatile in the coming months, the best opportunities in the Dow over the next 12 months should come from stocks with strong pricing power and earnings momentum. Investors should stick to stocks with strong brands, recurring revenue models, and competitive moats, which enable them to navigate macro uncertainty. Since the Dow comprises large-cap companies across various industries, these stocks might perform better during sell-offs. To identify the best and worst Dow stocks, we began with the 30 constituent stocks of the DJIA Index. We then ranked these stocks in ascending order based on the consensus 1-year median potential upside. Additionally, we also include data on hedge funds holding stakes in these stocks, utilizing Insider Monkey's Q4 2024 hedge fund database to provide deeper insights into institutional investor trends. It is important to note here that the terms 'best' and 'worst' refer strictly to the relative upside potential and do not imply any fundamental strengths or weaknesses of the underlying 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 363.5% since May 2014, beating its benchmark by 208 percentage points (see more details here). A close-up view of a payment terminal, capturing the sophistication of a payment Express Company (NYSE:AXP) is a payments company with operations worldwide. It offers products and services in areas including card networks, merchant acquisition and processing, card issuance, expense management, and travel and lifestyle services. It serves a wide range of customers, including consumers, small and mid-sized companies, and large corporations. American Express Company (NYSE:AXP) is among the DJIA's laggards regarding share price performance YTD. Its share has slid over 12% in 2025, a sharp contrast from a substantial 58% increase in 2024. For Q1 2025, the company reported revenue of $17 billion, which was in line with street expectations and represented a 7% year-over-year growth. That said, EPS of $3.64 exceeded estimates by around 5%. In addition, the company maintained its full-year guidance of 8%-10% revenue growth and EPS range of $15.0 and $15.5. However, the results and the beat on the bottom line were not enough to support substantial upward momentum in the share price. Following the results, William Blair analyst Christopher Kennedy reiterated his Buy rating on the stock. He believes the shares are trading at a valuation discount despite their better-than-average revenue and earnings growth trajectory. He highlighted American Express Company's (NYSE:AXP) strategic focus on premium consumers and strong financial positioning, which should help it weather the ongoing economic challenges. As a result, the analyst finds the stock attractive given his expectation of a mid-teens EPS growth driven by cost discipline and multiple growth opportunities. Overall, AXP ranks 29th on our list of best and worst dow stocks for the next 12 months. While we acknowledge the potential of Dow stocks, our conviction lies in the belief that 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 . READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
01-05-2025
- Business
- Yahoo
Jim Cramer Says You Should Buy American Express (AXP)
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. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey.
