Latest news with #StephenSqueri
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
18-04-2025
- Business
- Yahoo
American Express CEO says his business is in great shape because its wealthy Gen Z clients aren't hurting at all
American Express is in great shape even as the outlook of the global economy remains shaky. CEO Stephen Squeri said total billed business on Amex cards jumped 7.5% year over year and new-card growth was fueled by Gen Z and millennials, who made up the bulk of new customers. The world economy is looking increasingly uncertain, but the CEO of American Express says its wealthy customers are doing just fine. The financial services company on Thursday reported a 7.5% year-over-year increase in total billed business on Amex cards in the first quarter, which helped push the company's revenue up 8% year over year to a better-than-expected $17 billion for the period. Driving the results was solid spending from its wealthy customer base, said CEO Stephen Squeri. 'Through the first 10 to 12 days, it's [spending] as strong as it was last quarter, maybe slightly, slightly stronger, and credit still continues to look really good,' he told Yahoo Finance. Billings on restaurants and lodging stayed strong during the quarter, even as the company saw a slight spending pullback in the airlines category. Squeri also said the company had seen no effect from 'pull forward'—the idea that the delayed effect of purchases from late 2024 could be artificially buoying earnings. Another boon for the company was the 3.4 million new cardholders it added during the quarter, 60% of which were Gen Z and millennials, Squeri said Thursday during the company's first-quarter earnings call. Those younger cardholders spent 14% more in the quarter, while Gen X and boomers spent 5% and 1% more, respectively, CNBC reported. While Amex has traditionally been seen as the elite card of the gray-haired upper class, the brand has increasingly caught the eye of Gen Z and millennials, who have sought out the card for its 'lifestyle' perks. In 2023, 75% of new consumer platinum and consumer gold accounts belonged to these two cohorts, Fortune reported. The company is increasingly catering to younger customers through its restaurant and hotel perks, Squeri said, adding that Gen Z and millennials spent more on eating out than any other customer demographic. Amex has focused on this effort especially with its acquisitions of reservation apps Resy and Tock as well as its relaunch of the Gold Card, Squeri added. 'Gold could have been renamed 'the Restaurant Card' between the rewards accelerator, the Resy credit, and the Global Dining collection,' he said. Despite some economists forecasting a recession on the horizon, Squeri said Amex was expecting strong growth for the rest of the year and reiterated the company's guidance of 8% to 10% revenue growth. This story was originally featured on Sign in to access your portfolio
Yahoo
17-04-2025
- Business
- Yahoo
AmEx profit rises on resilient card spending
(Reuters) - American Express reported a 6% rise in first-quarter profit on Thursday, as its premium customers shrugged off fears of a slowdown to continue spending. Shares of the New York-based company rose 4.1% to $263.34 in premarket trading. The credit card giant's profit was $2.58 billion, or $3.64 per share, for the three months ended March 31, compared with $2.44 billion, or $3.33 per share, a year earlier. While U.S. President Donald Trump's tariff rhetoric had rattled some consumers during the quarter, the fallout was limited as the full scope of the hefty duties was only unveiled earlier this month. AmEx's longstanding focus on affluent customers could have also served as a buffer. For years, the company has used rewards and exclusive perks as a strategy to attract high-spending customers. "Our performance across key areas, including card member spending, customer retention, demand for our premium products and credit performance, continued to be strong across our customer base, consistent with and in many cases better than what we saw in 2024," CEO Stephen Squeri said. Provisions for credit losses were $1.2 billion in the quarter, compared with $1.3 billion a year earlier. Squeri said the company had seen steady spending and credit trends to date, allowing AmEx to maintain its full-year forecasts. The company had previously said it sees revenue growing at an 8% to 10% range in 2025, while profit was expected to be between $15 and $15.50 per share. Its shares have dropped 8% since the tariffs were announced on April 2, which Trump has touted as "Liberation Day". Sign in to access your portfolio
Reuters
17-04-2025
- Business
- Reuters
AmEx profit rises on resilient card spending
April 17 (Reuters) - American Express (AXP.N), opens new tab reported a 6% rise in first-quarter profit on Thursday, as its premium customers shrugged off fears of a slowdown to continue spending. Shares of the New York-based company rose 4.1% to $263.34 in premarket trading. here. The credit card giant's profit was $2.58 billion, or $3.64 per share, for the three months ended March 31, compared with $2.44 billion, or $3.33 per share, a year earlier. While U.S. President Donald Trump's tariff rhetoric had rattled some consumers during the quarter, the fallout was limited as the full scope of the hefty duties was only unveiled earlier this month. AmEx's longstanding focus on affluent customers could have also served as a buffer. For years, the company has used rewards and exclusive perks as a strategy to attract high-spending customers. "Our performance across key areas, including card member spending, customer retention, demand for our premium products and credit performance, continued to be strong across our customer base, consistent with and in many cases better than what we saw in 2024," CEO Stephen Squeri said. Provisions for credit losses were $1.2 billion in the quarter, compared with $1.3 billion a year earlier. Squeri said the company had seen steady spending and credit trends to date, allowing AmEx to maintain its full-year forecasts. The company had previously said it sees revenue growing at an 8% to 10% range in 2025, while profit was expected to be between $15 and $15.50 per share. Its shares have dropped 8% since the tariffs were announced on April 2, which Trump has touted as "Liberation Day".
Yahoo
28-03-2025
- Business
- Yahoo
3 Reasons American Express Is a Long-Term Buy for 2030 and Beyond
Although growth stocks have a place in many portfolios, even young, risk-tolerant investors should own some long-term value stocks. These stocks that you can count on give you the flexibility to invest some of your other funds in higher-risk, higher-growth potential stocks, since they minimize the overall risk of your entire portfolio. American Express (NYSE: AXP) has been around since 1850 -- that's quite a track record of success. It's a top stock with a differentiated model and long-term growth drivers, and it offers stability for any kind of investor. Here are three reasons to buy it now and hold it for at least five years. American Express has created a brand that targets the affluent consumer, and this customer base is more resilient than the average person. That provides some security for American Express, and it has continued to report healthy, profitable growth despite the inflationary environment. Revenue increased 10% year over year (currency neutral) in 2024, and earnings per share were up 25% to $14.01. CEO Stephen Squeri noted that momentum increased toward the end of the year with a strong holiday season. Consider that even though American Express has only a fraction of competitor Visa's cards (153 million versus more than 2.9 billion for Visa), it takes in close to double Visa's revenue. Today, it's reaching a younger consumer base. It has gone through an image overhaul and is constantly refreshing its cards and rewards program to appeal to the modern cardmember, and younger members account for more of its spending than any other age group. Management said U.S. fee-based consumer premium cards are the fastest-growing segment in its industry, and that it has 25% of those cards, implying a lot of upside potential. Millennial and Gen Z customers are the fastest-growing age group in these cards, and American Express is adding them at a higher rate than the overall industry. American Express also acts as its own bank, providing it with diversified revenue streams and a streamlined operational model. Younger customers are driving growth here too, with millennial and Gen Z members accounting for half of the high-yield savings accounts and a third of total balances. One way American Express stands out is that it charges fees for many of its credit cards. That creates loyalty and a recurring revenue stream, and card fees grow at double-digit rates annually -- 16% in 2024, accounting for nearly 13% of total revenue. About 70% of new card acquisitions were for fee-based cards, and management expects fee growth to stay in the mid- to high teens in 2025. It also has high renewal rates, feeding into this cycle. Squeri pointed out that the U.S. consumer gold card, which is its gold-standard and has a $325 annual fee, is resonating with a younger customer base. This membership base will drive future growth for American Express. American Express pays a growing dividend that yields just over 1% at the current price, or about its average. The dividend is an important reason that Warren Buffett is such a fan, although he loves the whole package. American Express has paid a dividend since 1989,and it's increased more than 200% over the past 10 years. It just announced a 17% increase, from $0.70 to $0.82. That's an excellent indication of how management feels about the company's position and strength. American Express is a stock you can buy today and hold for years, benefiting from its role in the economy and passive income. Ever feel like you missed the boat in buying the most successful stocks? Then you'll want to hear this. On rare occasions, our expert team of analysts issues a 'Double Down' stock recommendation for companies that they think are about to pop. If you're worried you've already missed your chance to invest, now is the best time to buy before it's too late. And the numbers speak for themselves: Nvidia: if you invested $1,000 when we doubled down in 2009, you'd have $312,980!* Apple: if you invested $1,000 when we doubled down in 2008, you'd have $42,421!* Netflix: if you invested $1,000 when we doubled down in 2004, you'd have $537,825!* Right now, we're issuing 'Double Down' alerts for three incredible companies, and there may not be another chance like this anytime soon.*Stock Advisor returns as of March 24, 2025 American Express is an advertising partner of Motley Fool Money. Jennifer Saibil has positions in American Express. The Motley Fool has positions in and recommends Visa. The Motley Fool has a disclosure policy. 3 Reasons American Express Is a Long-Term Buy for 2030 and Beyond was originally published by The Motley Fool
