American Express (AXP, Financial) experienced a decline of 1.53% today, closing the day at $269.59. This movement comes in the wake of downgrades by analysts, with HSBC moving the rating from 'buy' to 'hold' and BTIG shifting from 'neutral' to 'sell'.American Express (AXP, Financial) is currently trading at a price-to-earnings (PE) ratio of 20.12, which positions it as a relatively expensive option in the financial services sector. The company's valuation concerns are underscored by its Price-to-Book (PB) r ...

These two Buffett stocks are too good to pass up for patient, long-term investors.Want to help your portfolio? Watch what Warren Buffett is buying. His stock picks have, on average, crushed the market over the long term. And right now, two of his top holdings look too good to pass up.This is a company you can buy and hold foreverGreat companies can figure out how to generate impressive returns for shareholders without resorting to taking on excess debt. For decades, American Express (AXP -0.18%) has done a ...

Here at Zacks, we offer our members many different opportunities to take full advantage of the stock market, as well as how to invest in ways that lead to long-term success.One of our most popular services, Zacks Premium offers daily updates of the Zacks Rank and Zacks Industry Rank; full access to the Zacks #1 Rank List; Equity Research reports; and Premium stock screens like the Earnings ESP filter. All are useful tools to find what stocks to buy, what to sell, and what are today's hottest industries.It a ...

Group 1 - Vice President Kamala Harris is being positioned as the best candidate for business by her allies in the private sector through a new campaign called Business Leaders for Harris [1] - The campaign features testimonials from prominent business figures, including Mark Cuban, Reid Hoffman, Reed Hastings, and others, highlighting their support for Harris [1][2] - The initiative is backed by significant financial contributions, with Hoffman donating $6 million and Hastings contributing $7 million to the Republican Accountability PAC, which is behind the campaign [3] Group 2 - Executives involved in the campaign express a belief that Harris would be better for business than the current administration, with Hastings stating it would be an improvement [2] - The campaign includes a podcast hosted by Hoffman, featuring discussions with business leaders about their support for Harris and the perceived benefits for the business community [3] - There is a sentiment among some CEOs that they support Harris but feel constrained in expressing their views due to their current positions and responsibilities [3]

Core Viewpoint - Warren Buffett's investment in Bank of America remains significant despite recent sales, while American Express has overtaken it as the second-largest position in Berkshire Hathaway's portfolio, indicating a shift in preference towards American Express [1][2]. Group 1: Bank of America - Bank of America stock constitutes 10% of Berkshire Hathaway's total portfolio, making it the third-largest position [1]. - Recent sales of Bank of America stock by Buffett have led to speculation about his confidence in the stock, but it still holds a substantial position in his portfolio [1]. Group 2: American Express - American Express has become the second-largest position in Berkshire Hathaway's portfolio, accounting for 13.1% [2]. - The company has evolved beyond just a credit card issuer, functioning as a bank with a focus on digital financial services and small business solutions [3]. - American Express operates a closed-loop credit card network, allowing it to fund its own credit cards, which provides greater control and multiple revenue streams [4]. Group 3: Financial Performance - American Express reported a 44% year-over-year increase in net income in the second quarter, with a 21% increase excluding sale proceeds [6]. - The company has raised its earnings per share (EPS) guidance for the full year from approximately $12.90 to $13.50 [6]. - American Express has a dividend yield of 0.96%, which is lower than usual due to its strong stock performance, having increased by 46% this year, outperforming the S&P 500 [7].

Core Viewpoint - American Express (AXP) has a strong history of beating earnings estimates and is well-positioned for continued success in its upcoming quarterly report [1][2]. Group 1: Earnings Performance - American Express has consistently surpassed earnings estimates, achieving an average beat of 10.25% over the last two quarters [1]. - In the most recent quarter, the company reported earnings of $3.49 per share, exceeding the expected $3.22 per share by 8.39% [1]. - For the previous quarter, American Express reported $3.33 per share against an estimate of $2.97 per share, resulting in a surprise of 12.12% [1]. Group 2: Earnings Estimates and Predictions - There has been a favorable change in earnings estimates for American Express, with a positive Zacks Earnings ESP indicating a strong likelihood of an earnings beat [2]. - Stocks with a positive Earnings ESP and a Zacks Rank of 3 (Hold) or better have a nearly 70% chance of producing a positive surprise [2]. - American Express currently has an Earnings ESP of +1.52%, suggesting increased analyst optimism regarding its near-term earnings potential [3]. Group 3: Upcoming Earnings Report - The next earnings report for American Express is expected to be released on October 18, 2024 [3].

Core Viewpoint - American Express Company (AXP) is experiencing strong stock performance and growth potential, driven by favorable market conditions, consumer spending trends, and a solid customer base, particularly among Millennials and Gen-Z [1][3][6]. Stock Performance - AXP closed at $266.17, just 2.3% below its 52-week high of $272.41, with a 16.5% increase in shares over the past three months, outperforming the industry and S&P 500 Index [1][2]. - The stock is trading above its 50-day and 200-day moving averages, indicating strong upward momentum [2]. Interest Rate Impact - The Federal Reserve's recent 50 basis points rate cut is expected to boost consumer spending, benefiting AXP's transaction volumes and top line [3]. - Americans' credit card debt reached a record $1.14 trillion, suggesting increased reliance on credit, which could lead to higher borrowings for AXP [3][4]. Revenue Composition - AXP generates most of its revenue from non-interest income, with 22.8% coming from net interest income, which is influenced by interest rate changes [4]. - Lower interest rates are anticipated to enhance both merchant discount revenues and card loan balances, driving overall growth [4]. Credit Quality - AXP's net charge-off rate increased to 2.2% in August but is expected to stabilize at 2.1% by the end of 2024 [5]. - Delinquency rates remained stable at 1.3%, supported by AXP's premium customer base of high-income consumers [5]. Growth Drivers - Key growth drivers include increased card member spending, fee growth, rising interest income, and a growing customer base among Millennials and Gen-Z [6]. - AXP's card fee revenue growth was 15% in Q2 2024, with expectations for long-term revenue and earnings per share (EPS) growth of 10% and mid-teens, respectively [6]. Customer Segmentation - Gen-Z is projected to become the largest customer segment by 2030, prompting AXP to focus on this demographic for future growth [7]. - Product innovation and strategic partnerships are enhancing AXP's customer engagement and market reach [7]. Shareholder Value - AXP returned value to shareholders through dividend payments and share buybacks, with a dividend yield of 1.1%, higher than Mastercard and Visa [7]. - The company bought back 7 million shares in Q2 2024 and paid a dividend of 70 cents per share [7]. Earnings Estimates - Analysts have revised AXP's earnings estimates upward, with a consensus estimate for 2024 EPS at $13.13, indicating a year-over-year growth of 17.1% [8]. - The 2025 earnings consensus is pegged at $14.9 per share, suggesting a 13.5% increase year-over-year [8]. Valuation - AXP is trading at a forward price/earnings ratio of 18.44X, higher than the industry's average of 14.64X, but still cheaper than peers like Mastercard and Visa [10][12]. - Despite the premium valuation, AXP is considered to have significant upside potential due to its robust business model and positive developments [10]. Final Recommendation - AXP is well-positioned for growth with rising card fees and interest income, supported by a strong customer base [13]. - The company's stable credit quality and shareholder initiatives make it an attractive investment opportunity [13].

Group 1 - American Express (AXP) ended the recent trading session at $266.21, showing a -0.41% change from the previous day's closing price, which lagged behind the S&P 500's 0.25% gain [1] - Over the past month, shares of American Express have gained 5.29%, outperforming the Finance sector's gain of 1.86% and the S&P 500's gain of 1.65% [1] Group 2 - American Express is set to release its earnings on October 18, 2024, with an anticipated EPS of $3.26, reflecting a 1.21% decline compared to the same quarter last year [2] - The consensus estimate projects revenue of $16.66 billion, indicating an 8.28% increase from the equivalent quarter last year [2] - For the annual period, the Zacks Consensus Estimates anticipate earnings of $13.13 per share and revenue of $65.99 billion, representing increases of +17.13% and +9.04% respectively from the previous year [2] Group 3 - The Zacks Rank system, which incorporates estimate changes, currently ranks American Express as 2 (Buy), with a recent EPS estimate increase of 0.04% [3] - American Express has a Forward P/E ratio of 20.36, which is higher than the industry average Forward P/E of 11.23, indicating a premium valuation [3] Group 4 - American Express has a PEG ratio of 1.48, compared to the industry average PEG ratio of 1.1 [4] - The Financial - Miscellaneous Services industry, which includes American Express, holds a Zacks Industry Rank of 54, placing it in the top 22% of over 250 industries [4]

Company Performance - American Express (AXP) ended the recent trading session at $262.18, showing a -1.21% change from the previous day's closing price, underperforming the S&P 500's daily loss of 0.29% [1] - Over the past month, shares of American Express have appreciated by 4.87%, outperforming the Finance sector's gain of 2.97% and the S&P 500's gain of 1.57% [1] - The company is scheduled to release its earnings on October 18, 2024, with a forecasted EPS of $3.26, reflecting a 1.21% decrease from the same quarter last year, and expected quarterly revenue of $16.65 billion, up 8.28% from the year-ago period [1] Earnings Estimates - For the entire fiscal year, Zacks Consensus Estimates project earnings of $13.13 per share and revenue of $65.99 billion, representing changes of +17.13% and +9.04% from the prior year, respectively [2] - Recent changes to analyst estimates for American Express indicate shifting dynamics in short-term business patterns, with positive estimate revisions seen as a good sign for the company's business outlook [2] Valuation Metrics - American Express currently has a Forward P/E ratio of 20.22, which is a premium compared to its industry's average Forward P/E of 11.58 [3] - The company holds a PEG ratio of 1.47, while the Financial - Miscellaneous Services industry has an average PEG ratio of 1.09 [3] Industry Overview - The Financial - Miscellaneous Services industry is part of the Finance sector and currently holds a Zacks Industry Rank of 66, placing it within the top 27% of over 250 industries [4] - The Zacks Industry Rank measures the strength of individual industry groups by assessing the average Zacks Rank of the stocks within those groups, with the top 50% rated industries outperforming the bottom half by a factor of 2 to 1 [4]

Core Insights - Warren Buffett is regarded as one of the greatest investors, with a successful track record through Berkshire Hathaway, which has a portfolio valued at approximately $300 billion [2] - Berkshire Hathaway operates numerous privately held businesses and does not pay dividends, allowing for opportunistic investments [2] - The company has a strong cash position, with over $276 billion available for investment [2] Company Analysis - **Berkshire Hathaway**: A conglomerate with diverse holdings, including consumer brands and significant cash reserves, which has historically outperformed the S&P 500 [2][3] - **American Express**: Represents 21% of Berkshire's portfolio, with expected earnings growth of 15% annually; considered an indefinite holding by Buffett [4][5] - **Visa**: Added to the portfolio in 2011, has returned over 1,700% since then; expected earnings growth of over 12% annually, though it constitutes only 0.8% of Berkshire's portfolio [6][7]