While shares of American Express ( AXP ) have been a moderate performer over the past year, gaining 8%, the stock has had a more difficult start to 2026. Indeed, shares are down over 20% from their highs as concerns have mounted about credit quality andOver fifteen years of experience making contrarian bets based on my macro view and stock-specific turnaround stories to garner outsized returns with a favorable risk/reward profile. If you want me to cover a specific stock or have a question for an article, j ...

Key Takeaways AmEx USCS revenue rose 11% to $34.8B in 2025, with pretax income up 7% on higher spending.AmEx saw 8% billed business growth, led by Gen-X, Millennials and fast-growing Gen-Z users.AmEx credit quality improved, with net write-off rate at 1.1% despite a 2% drop in receivables.American Express Company (AXP) continues to see steady momentum in its U.S. Consumer Services (“USCS”) segment, driven by a strategy centered on premium customers, younger card members and fee-based products. In 2025, its ...

Welcome back [music] to the opening bell. I'm Alex Coffee in for Nicole Pedal. Let's get you set up for the trading day and week.And joining us now from the New York Stock Exchange is Chris Versace. Chris of course a portfolio manager for the Street Pro portfolio and the chief investment officer of Tamatica Research. All right.Uh hey, nothing's going on this morning, right Chris. Um I was just talking with Kevin Green at the top of the show and I said we do all this work over the weekend and then you just t ...

When one of the world's greatest investors puts nearly $45 billion into a single stock, people pay attention. Warren Buffett's Berkshire Hathawayowns 151.6 million shares of American Express,  a 22.1% stake that makes it the third-largest holding in the entire Berkshire portfolio at 14.7%. Only Apple at 18.5% is a larger bet. Valued at a market cap of $203 billion, American Express (AXP) stock is also part of the Dow Jones 30 index. Down 23% from its 52-week high, AXP stock currently offers you a dividen ...

Core Viewpoint - American Express (AXP) stock has declined nearly 21% year-to-date, significantly underperforming the S&P 500 index, which is down 4% [1] Company Performance - Despite the stock decline, the fundamentals of American Express remain strong, with analysts projecting a 9% growth in annual revenue and a 14% increase in per-share net income for the current year [14] - In 2025, American Express reported an annual revenue increase of 10% to almost $19 billion and a net income rise of 13% to nearly $2.5 billion, achieving a net margin of 13% [13] Industry Context - Concerns about artificial intelligence (AI) disrupting traditional financial businesses like American Express are prevalent among investors, as AI could potentially reduce transaction fees by utilizing low-cost or free transaction methods [2][4] - The credit card industry, including American Express, generates significant revenue from transaction fees, which could be threatened by the rise of AI-driven price-hunting services [4][12] Competitive Advantages - American Express possesses strong competitive advantages, or "moats," including a robust rewards program that incentivizes spending among its members, which is a key selling point for the company [7][8] - The prestige associated with American Express cards, particularly the Centurion Card (Black Card), contributes to its appeal and customer loyalty, making it less vulnerable to competition from AI [9][10] Market Position - The current market capitalization of American Express is approximately $203 billion, with a gross margin of 60.65% and a dividend yield of 1.11% [11]

Core Viewpoint - American Express has shown strong performance with a total return of 121% over the past five years, significantly outperforming the S&P 500 index, attributed to robust fundamental performance [1] Group 1: Stock Performance - The stock has recently experienced a sell-off, trading 22% below its peak from December [2] - The current price-to-earnings ratio (P/E) has decreased from 25.6 to 19.5, making it a more attractive investment opportunity [4] Group 2: Market Sentiment - American Express is a top holding of Berkshire Hathaway, which provides retail investors with confidence due to Warren Buffett's endorsement [3] - The sell-off was influenced by concerns over potential job losses due to artificial intelligence, impacting consumer spending and affecting American Express along with other consumer-financial stocks [6] Group 3: Financial Fundamentals - In the previous year, American Express generated $72.2 billion in net revenue, a 10% increase compared to 2024 and 36% higher than in 2022, with management expecting long-term revenue growth of 10% or more per year [8] - The company anticipates earnings per share to grow at a mid-teens annual rate, suggesting that the share price could reflect these gains if the valuation remains stable [9]

Core Viewpoint - Dividend stocks are in high demand this year as investors seek stability amid stock market volatility, with the Dow Jones U.S. Dividend 100 Index up nearly 12% year to date, outperforming major market indexes [1] Group 1: Demand for Dividend Stocks - Good dividend stocks are sought after due to their ability to provide income regardless of stock performance, often at elevated yields, and are typically offered by stable, value-oriented companies [2] - Dividend stocks can be reinvested to enhance returns, making them attractive in a negative return market [2] Group 2: Ares Capital (ARCC) - Ares Capital is a business development company that pays out 90% of taxable income as dividends, resulting in a high dividend yield of 10.69% [3][5] - The company has a market cap of $13 billion and has invested $29.5 billion in 603 companies, primarily in senior secured loans [5][6] - Ares Capital maintains a quarterly dividend of $0.48 per share, which has remained unchanged since the end of 2022 [6] Group 3: S&P Global (SPGI) - S&P Global has raised its dividend annually for 53 consecutive years, making it a Dividend King, with a current yield of 0.91% [7][9] - The company has a market cap of $127 billion and has generated an average annualized return of 16.4% over the past 10 years, outperforming the S&P 500 [9][10] - Despite a 17% decline year to date, analysts are optimistic about S&P Global's prospects, with 93% rating it as a buy and a median price target suggesting a 26% upside [10] Group 4: American Express (AXP) - American Express recently increased its dividend by 16% to $0.95 per share, marking the fifth consecutive year of dividend increases [11][12] - The company has a market cap of $203 billion and has seen revenue growth of 10% and earnings growth of 15% in 2025, with similar expectations for 2026 [13][14] - Analysts project a median price target of $393 per share for American Express, indicating a potential 30% upside over the next 12 months [15]

We just covered the 10 Best Stocks to Buy Now According to Warren Buffett. American Express Co (NYSE:AXP) ranks #2  (see the 5 best stocks to buy now here). The Federal Reserve recently kept its lending rate unchanged as expected but pointed to potential upside risks to inflation. On Wall Street, attention is shifting to a scenario where the central bank may need to consider raising interest rates instead of cutting them if the Middle East conflict continues to escalate and its economic fallout deepens. W ...

Core Insights - Warren Buffett's tenure as CEO of Berkshire Hathaway culminated in the company reaching a market capitalization of one trillion dollars before his retirement [1] - Buffett's investment strategy focused on long-term holdings, particularly in companies like Coca-Cola, American Express, and Moody's, which have consistently generated significant returns [2][4] Investment Performance - Coca-Cola, American Express, and Moody's are highlighted as key investments, with Coca-Cola being held since 1988, American Express since 1991, and Moody's since 2000 [5] - The cost basis for these stocks is notably low due to their lengthy holding periods: Coca-Cola at approximately $3.25, American Express at $8.49, and Moody's at $10.05 per share [5] - These investments have allowed Berkshire Hathaway to double its initial investment every 21 to 30 months through dividends [7] Dividend Growth - Coca-Cola has increased its annual dividend payout for 64 consecutive years, while American Express and Moody's have raised theirs for 17 and 5 years, respectively [6] - Projected annual payouts are $2.06 for Coca-Cola, $3.80 for American Express, and $4.12 for Moody's, resulting in yields on cost of 63%, 45%, and 41% respectively [7] Competitive Advantages - Companies like Coca-Cola, American Express, and Moody's possess well-defined competitive advantages that contribute to their status as dividend powerhouses [9] - Coca-Cola's global operations and effective marketing strategies have allowed it to maintain strong consumer connections across generations [10] - American Express benefits from transaction fees and annual fees from affluent clientele, which provides stability during economic fluctuations [12] - Moody's has a dual operating model that thrives in varying economic conditions, with its debt-rating segment benefiting from low interest rates and its analytics segment gaining demand during uncertainty [13]

Core Insights - Visa is implementing a tap-to-pay function that utilizes stablecoins, indicating a shift towards digital currency integration in payment systems [1] - Mastercard is also advancing its capabilities in stablecoin development, reflecting a broader trend in the financial services industry towards embracing cryptocurrency solutions [1] Company Developments - Visa's new tap-to-pay feature aims to enhance transaction efficiency and user experience by leveraging stablecoins [1] - Mastercard's focus on developing stablecoin capabilities suggests a strategic move to remain competitive in the evolving digital payment landscape [1] Industry Trends - The integration of stablecoins by major payment processors like Visa and Mastercard highlights a growing acceptance of digital currencies in mainstream finance [1] - This trend may lead to increased adoption of cryptocurrency for everyday transactions, potentially transforming the payment industry [1]