We came across a bullish thesis on American Express Company on Rigatoni Capital’s Substack. In this article, we will summarize the bulls’ thesis on AXP. American Express Company's share was trading at $360.31 as of December 1st. AXP’s trailing and forward P/E were 24.20 and 20.53 respectively according to Yahoo Finance. 10 Best Fintech Stocks To Buy Now American Express (AXP) remains one of the most enduring wealth compounders, rooted in a business model that caters to the affluent consumer segment drivi ...

Group 1: AI Stocks and Market Sentiment - Concerns about an impending AI 'bubble' have negatively impacted sentiment towards AI stocks, leading to adverse price movements [1][10] - Despite NVIDIA's record-breaking Q3 results, skepticism remains prevalent, as the stock faced pressure post-earnings [1][10] - The AI sector continues to dominate market discussions, with mixed opinions on its sustainability and valuation [10] Group 2: American Express (AXP) - American Express reported a double-beat on expectations, with adjusted EPS increasing by 19% and sales rising by 10% [3][4] - The company raised its sales and EPS outlook for the current year due to strong quarterly results, resulting in a positive stock reaction [3][4] - AXP achieved record quarterly sales of $18.4 billion, driven by successful launches of updated Platinum Cards and increased Card Member spending [4] Group 3: Caterpillar (CAT) - Caterpillar also posted a double-beat, with sales growing by 10% despite a slight decline in adjusted EPS [5][8] - The company demonstrated broad-based strength across its primary segments and reported operating cash flow of $3.7 billion, highlighting strong cash generation capabilities [5][8] - Caterpillar is recognized for its shareholder-friendly approach, being a Dividend Aristocrat, which supports its ability to pay dividends and accumulate cash [6]

Key Takeaways AmEx trades above its 5-year median P/E while remaining below the industry average.AXP reports 11% revenue growth and 9% network volume gains in Q3 2025.AmEx sees strong Gen Z and Millennial spending and rising 2025-2026 earnings estimates.American Express Company (AXP) , also known as AmEx, has entered a valuation zone attracting increased attention, as shares now trade above their long-term averages. With forward 12-month earnings (P/E) of 21.17X, AXP appears quite high compared to its 5-yea ...

Core Insights - American Express Company (AXP) has demonstrated strong performance in the payments sector, achieving a return on equity (ROE) of 35.9% in Q3 2025, an increase from 33.9% year-over-year [1][8] Financial Performance - Total expenses for American Express rose by 10% in 2023, 6% in 2024, and 10% year-over-year in Q3 2025, driven by increased spending on rewards, services, marketing, and business development [2][8] - The Zacks Consensus Estimate for American Express' 2025 earnings is projected at $15.43 per share, indicating a 15.6% increase from the previous year [10] Competitive Landscape - Visa Inc. reported a 13% year-over-year increase in adjusted operating expenses in Q4 fiscal 2025, while returning $6.1 billion to shareholders through buybacks and dividends [5] - Mastercard's adjusted operating expenses rose by 15% year-over-year in Q3 2025, with share buybacks totaling $3.3 billion and dividends of $687 million [6] Strategic Initiatives - American Express is leveraging AI, machine learning, and fraud detection to enhance customer experience and optimize operations, which supports revenue growth amid rising costs [3][8] - The company introduced Amex Ads, a digital advertising platform aimed at improving brand engagement with American Express Card Members [2] Valuation Metrics - American Express trades at a forward price-to-earnings ratio of 20.75X, lower than the industry average of 23.56X, and holds a Value Score of C [9]

Core Insights - Berkshire Hathaway has taken a $4.3 billion position in Alphabet, surprising many observers as Warren Buffett has not traditionally been a tech investor [1][2] - Alphabet is now among Berkshire's top 10 holdings, indicating Buffett's approval of the investment [2] - The future of Alphabet as a "forever stock" remains uncertain, as Buffett defines such stocks as those that are successful in their core businesses and have become essential global brands [3] Group 1: Forever Stocks in Berkshire's Portfolio - Coca-Cola is the first "forever stock," with Berkshire owning about 9% of its outstanding shares; the company has a strong economic moat and generates predictable cash flows [5][6] - American Express is the second stock, with Berkshire owning over 20% of its shares; it has a closed-loop network that allows it to capture full economic profit from credit card payments [7][8] - Occidental Petroleum is the third stock, with Berkshire owning more than 26% of its shares; despite concerns about its economic moat, the company is improving its balance sheet [9][10]

Core Insights - The Amex Platinum Card offers a significant welcome bonus of up to 175,000 Membership Rewards points, which can be redeemed for high-value travel experiences, particularly in first class [1][6][48] - The value of Amex Membership Rewards points is estimated at 2.2 cents per point, making the maximum bonus worth approximately $3,850 [2][7] - The card is recognized for its luxury travel benefits, including extensive airport lounge access, elite status, and various statement credits [5][8][12] Welcome Offer - New cardholders may earn up to 175,000 Membership Rewards points after spending $8,000 in the first 6 months [1][6] - The welcome offer varies by individual, and not all applicants may qualify for the maximum bonus [1][6] Benefits and Features - The card provides access to over 1,550 airport lounges globally, including exclusive Amex Centurion Lounges [10] - Cardholders earn 5x points on flights and prepaid hotel bookings through Amex Travel, with a cap of $500,000 per year [10][12] - Additional benefits include $200 in airline fee credits, $300 in hotel credits, and various statement credits for services like Uber and digital entertainment [16][12] Redemption Opportunities - The card's points can be transferred to over 20 airline and hotel partners, allowing for high-value redemptions, such as first-class flights that typically cost thousands of dollars [13][14] - Specific examples of valuable redemptions include ANA First Class to Tokyo, Lufthansa First Class to Frankfurt, and Singapore Airlines First Class to Frankfurt, showcasing the potential for significant savings [15][22][42] Conclusion - The Amex Platinum Card's welcome offer and extensive benefits make it a compelling option for travelers seeking luxury experiences without the high cash costs typically associated with first-class travel [48][50]

Core Insights - The Q3 earnings cycle for 2025 has shown strong growth, with many companies exceeding consensus expectations, particularly American Express, Palantir, and Roku [1] Roku - Roku achieved a double-beat on expectations, with adjusted EPS tripling and a 14% increase in sales [2] - The company reported positive operating income for the first time since 2021, driven by advertising efforts and subscription growth [2] - Following the strong results, Roku raised its fiscal year outlook and currently holds a Zacks Rank 2 (Buy) [2] American Express - American Express also posted a double-beat, with adjusted EPS climbing 19% and a 10% increase in sales [3] - The company raised its current year sales and EPS outlook, benefiting from strong quarterly results [3] - Sales reached $18.4 billion, a quarterly record, supported by successful launches of updated Platinum Cards and increased Card Member spending [4] Palantir - Palantir reported quarterly sales of $1.2 billion, marking a record with a 63% year-over-year increase [5] - US commercial revenue surged 121% YoY, while US government revenue increased by 52% [5] - The company closed over 200 deals worth at least $1 million, with a total contract value of $2.8 billion, up 340% from the previous year [6] - Customer count grew by 45% YoY, indicating strong demand and market presence [6] Overall Market Sentiment - The Q3 earnings cycle has been positive, with Roku, Palantir, and American Express contributing robust results, reflecting strong business momentum [7]

Core Insights - Fintech is significantly enhancing financial access for underserved populations in emerging markets, presenting substantial growth opportunities as AI technology evolves [1][2] Group 1: SoFi Technologies - SoFi Technologies has transitioned from a student loan refinancer to a comprehensive digital bank, offering various financial products, which increases customer lifetime value [3][4] - As of Q3 2025, SoFi's member base reached over 12.6 million, with total products exceeding 18.6 million, marking a 35% year-over-year increase in members and a 36% increase in products [4] - SoFi was granted a national bank charter in 2022, allowing it to utilize low-cost member deposits for lending, providing a competitive edge over fintechs reliant on third-party funding [6] - Shares of SoFi have risen approximately 60% over the past year, reflecting investor enthusiasm for its financial performance and market potential [7] Group 2: American Express - American Express targets higher-income consumers, benefiting from loyalty and high retention rates, which allows for annual fee increases while maintaining profitability [8] - Unlike Visa and Mastercard, American Express operates as both card issuer and payment processor, generating revenue from merchant fees and interest payments, providing income stability [9] - In Q3, American Express reported a 16% year-over-year profit increase to $2.9 billion, with total revenue growing 11% to $18.4 billion, driven by a 9% increase in card member spending [11] - The company has a strong balance sheet and a history of returning capital to shareholders through dividends and buybacks, maintaining dividend payments even during economic downturns [12]

Core Insights - The article compares Bread Financial Holdings (BFH) and American Express (AXP) to determine which stock is more attractive to value investors [1] Valuation Metrics - BFH has a Zacks Rank of 2 (Buy), indicating a more favorable earnings estimate revision activity compared to AXP, which has a Zacks Rank of 3 (Hold) [3] - BFH's forward P/E ratio is 6.65, significantly lower than AXP's forward P/E of 23.59, suggesting that BFH may be undervalued [5] - The PEG ratio for BFH is 0.43, while AXP's PEG ratio is 1.64, indicating that BFH has a better valuation relative to its expected earnings growth [5] - BFH's P/B ratio is 0.93, compared to AXP's P/B of 7.73, further supporting the notion that BFH is undervalued [6] - Based on these metrics, BFH holds a Value grade of A, while AXP has a Value grade of C, making BFH a more attractive option for value investors [6]

Core Insights - American Express Company (AXP) is experiencing significant growth opportunities with younger consumers, particularly Gen Z and Millennials, who are increasingly adopting AXP's premium, digital-first products [1][9] - The focus of Millennials and Gen Z on lifestyle choices aligns with AXP's offerings, which emphasize experiences over material possessions [2] - Digital onboarding and streamlined application processes have enhanced customer experience, making AXP's brand more aspirational [3] Consumer Trends - Millennials and Gen Z prioritize experiences, with AXP's airport lounges, dining rewards, and travel benefits catering to this preference [2][9] - Spending habits among these demographics are shifting towards wellness and subscription services, areas where AXP excels [3] Financial Performance - In Q3 2025, U.S. Consumer Services billed business increased by 9% year-over-year, driven by strong spending from Millennials and Gen Z [4][9] - The Zacks Consensus Estimate for AXP's 2025 earnings is projected at $15.43 per share, reflecting a 15.6% increase from the previous year [11] Competitive Landscape - Competitors like Mastercard and Visa are also enhancing their offerings to attract younger consumers through partnerships and innovative features [5][6][7] - Mastercard focuses on travel partnerships and digital identity tools, while Visa emphasizes digital security and seamless online experiences [6][7] Valuation Metrics - AXP shares have risen by 22.7% year-to-date, contrasting with a 7.1% decline in the industry [8] - AXP's forward price-to-earnings ratio stands at 20.98X, below the industry average of 23.88X, indicating a potentially attractive valuation [10]