Core Viewpoint - American Express Company (AXP) shares have declined 21.3% year to date, underperforming the S&P 500's 14.1% decline, amid broader industry struggles and concerns over economic factors [1][4] Company Performance - American Express is now 8.9% closer to its 52-week low of $214.51, which may attract investors looking to buy the dip [4] - The company operates under a different business model compared to Visa and Mastercard, acting as both a card issuer and payment processor, which involves taking on full credit risk [5] - Despite the perceived risk, American Express relies on a wealthy, low-risk customer base, minimizing credit risk [6] Market Environment - Economists and traders have raised expectations for Federal Reserve interest rate cuts, which could impact American Express's banking segment by reducing net interest income [7] - Lower interest rates may stimulate consumer spending, potentially benefiting American Express's core credit card business [7] Valuation - American Express trades at a forward price-to-earnings (P/E) ratio of 14.70X, slightly above the industry average of 13.18X, but below its own five-year median P/E of 16.73X, indicating potential for upside [9] - In comparison, Visa and Mastercard have higher valuations, trading at forward P/E ratios of 26X and 29.49X, respectively [10] Financial Health - As of the fourth quarter, American Express held $40.6 billion in cash and cash equivalents with only $1.4 billion in short-term debt, indicating a strong liquidity position [12] - The company generated $14 billion in net cash from operations in 2024, supporting growth investments and shareholder returns [12] - American Express returned $7.9 billion through dividends and share buybacks, with a recent 17% increase in its quarterly dividend [12] Customer Base and Strategy - American Express has a loyal customer base with high card acquisition and retention rates, driving steady card fee revenue [13] - The company is focusing on marketing to younger generations, viewing them as long-term growth opportunities [13] - With a diversified customer base and solid financials, American Express is positioned for continued earnings and revenue growth [14] Earnings Estimates - The Zacks Consensus Estimate for 2025 earnings indicates a 14.5% year-over-year increase, with revenue growth estimates of 8.6% for 2025 and 8.3% for 2026 [15] - American Express has surpassed earnings estimates in the past four quarters, delivering an average surprise of 6.9% [15] Challenges - The company's expenses have been rising, with total expenses increasing by 22% in 2021 and 24% in 2022, which may pressure profit growth [17] - American Express is more exposed to domestic economic fluctuations compared to Visa and Mastercard, making it less flexible in adapting to non-card payment trends [18]

In the past 40 years, Berkshire Hathaway has compounded shareholder capital to the tune of 40,000%. The conglomerate has done this under the direction of Warren Buffett, arguably the greatest capital allocator ever who knows how to pick winners.There's one top holding for Berkshire, representing 13.8% of the portfolio, that might interest average investors right now: American Express (AXP -5.38%). The Oracle of Omaha's firm controls about one-fifth of the business. The stock is trading 28% off its record, s ...

Fortune collaborated with partner Korn Ferry on this survey of corporate reputations. It began with a universe of about 1,500 candidates: the 1,000 largest U.S. companies ranked by revenue, along with non-U.S. companies in Fortune’s Global 500 database thatGet The Full Fortune World’s Most Admired Companies StoryClick here to subscribe to The Dividend Dogcatcher. Get more information and the follow-up to this article.Catch A Dog On Facebook the evening before NYSE trade day on Facebook/Dividend Dog Catcher, ...

A tariff-induced inflation spike would mean higher costs for essentials. If you're already feeling stretched, now is the time to bulk up your emergency fund. Most experts recommend having three to six months' worth of expenses saved, but if tariffs drive up costs, having extra savings could be a lifesaver.Here are four smart moves to protect your finances and stay ahead of potential price hikes.No one knows exactly how this will shake out, but one thing is certain: Now is the time to get your finances in or ...

Group 1: JPMorgan Chase - JPMorgan Chase recently announced a 12% increase in its quarterly dividend, raising it to $1.40 per share [2][6] - The bank reported a net revenue of $177.6 billion for 2024, reflecting a 12% increase from the previous year, and a record net income of almost $58.5 billion, up 18% [3] - The commercial and investment banking division saw a significant 23% increase in net income, reaching nearly $25 billion, driven by strong financial market conditions [4] Group 2: American Express - American Express declared a 17% increase in its quarterly dividend, bringing it to $0.82 per share [7][11] - The company achieved a net revenue of just under $66 billion for 2024, a 9% increase from 2023, and a net income exceeding $10.1 billion, up 21% [7][8] - American Express added 13 million new cards during the year, setting a company record, and is projecting revenue growth of 8% to 10% for 2025 [9][10]

Core Viewpoint - American Express is a strong investment opportunity due to its resilient consumer base, fee-based model, and growing dividend, making it suitable for long-term holding. Group 1: Resilient Consumer Base - American Express targets affluent consumers, providing stability and healthy growth despite inflation, with a 10% year-over-year revenue increase and a 25% rise in earnings per share to $14.01 in 2024 [3][4] - The company is successfully reaching younger consumers, with millennials and Gen Z driving growth in fee-based premium cards, which are the fastest-growing segment in the industry [5][6] Group 2: Fee-Based Model - The fee-based structure of American Express creates loyalty and a recurring revenue stream, with card fees growing at 16% in 2024, accounting for nearly 13% of total revenue [7] - Approximately 70% of new card acquisitions are for fee-based cards, with expectations for continued mid- to high-teen growth in fees for 2025 [7][8] Group 3: Dividend Growth - American Express has a history of paying dividends since 1989, with a 200% increase over the past decade and a recent 17% increase from $0.70 to $0.82, reflecting management's confidence in the company's strength [9]

The Oracle of Omaha plans to hold eight stocks "indefinitely." Recently, he's bought additional shares of six of these companies.When it comes to billionaire money managers, Berkshire Hathaway's (BRK.A 0.90%) (BRK.B 0.84%) Warren Buffett is in a class of his own. Since taking over as Berkshire's CEO six decades ago, he's overseen a jaw-dropping aggregate return in his company's Class A shares (BRK.A) of better than 6,321,000%, as of the closing bell on March 21.What makes the Oracle of Omaha so special -- a ...

Investors looking for stocks in the Financial - Miscellaneous Services sector might want to consider either Orix (IX) or American Express (AXP) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank emphasizes companies w ...

Dividends have been crucial to investor returns over the decades. According to Hartford Funds research, 85% of the S&P 500's (^GSPC -1.07%) cumulative total return since 1960 can be attributed to reinvested dividends and the power of compounding. This historical perspective underscores why dividend-paying stocks remain a cornerstone strategy for long-term investors seeking both capital appreciation and sustainable income.However, not all dividend payers are created equal. Research consistently shows that co ...

In the latest market close, American Express (AXP) reached $264.38, with a -0.47% movement compared to the previous day. The stock's performance was behind the S&P 500's daily gain of 0.64%. Elsewhere, the Dow gained 0.85%, while the tech-heavy Nasdaq added 0.31%.The credit card issuer and global payments company's shares have seen a decrease of 14.6% over the last month, not keeping up with the Finance sector's loss of 4.63% and the S&P 500's loss of 7.69%.Market participants will be closely following the ...