Investment Thesis - American Express shares have risen 7.72% since late May, outperforming the market return of 5.77% [3] - Despite bearish sentiment regarding U.S. consumer spending, recent data indicates a rebound in consumer confidence, particularly among high-income households [3][6] - High-income consumers are benefiting from higher savings and stable mortgage rates, which positions American Express favorably [3][5] Consumer Confidence Rebound - The University of Michigan's Consumer Sentiment Index increased by 1.5 points in August, marking the first rise after four months of decline [6] - A 10% surge in long-term economic expectations contributed to this improvement, with consumer sentiment now 36% higher than the historic low in June 2022 [6] - EY's Future Consumer Index shows 47% of respondents expressing a positive outlook, with 61% feeling in control of their lives despite rising living costs [7] Company Performance - Over the last 12 months, American Express stock surged by 61.48%, significantly outperforming the S&P 500's 25.11% increase [5] - The company's focus on affluent consumers has resulted in stable credit card metrics and efficient loan operations [3][10] - American Express's return on equity (ROE) stands at 34.51%, well above the sector median of 10.38%, indicating strong capital management [8] Valuation - American Express's forward PEG ratio is 1.27, slightly below the sector median of 1.28, suggesting conservative growth assumptions by the market [8] - The company is expected to trade at a 20% premium to the sector median PEG ratio, indicating potential upside of about 20.9% for shares [8] Bottom Line - American Express has effectively segmented the consumer credit-card market by targeting higher-income consumers, allowing it to capitalize on increasing consumer confidence while mitigating risks associated with lower-income consumers [10] - The company's stable performance in credit card default metrics and resilient customer base supports a bullish outlook for its shares [10]

LONDON, Sept. 03, 2024 (GLOBE NEWSWIRE) -- UNIPaaS, a leading Payment as a Service (PaaS) provider, has announced a new partnership with American Express that will enable more small and mediumsized businesses (SMBs) to offer their customers the option of paying invoices with Amex Cards through its platform. UNIPaaS powers Software as a Service (SaaS) platforms' payment services with a white-labelled, fully managed solution, allowing them to easily offer a unified and seamless acceptance of all relevant paym ...

MIAMI, Aug. 29, 2024 (GLOBE NEWSWIRE) -- International Money Express, Inc. (NASDAQ: IMXI), ("Intermex" or the "Company") a leading, omni-channel money remittance company, is pleased to announce the successful refinancing of its existing secured debt through the establishment of a new $425 million revolving credit facility. The new credit agreement provides for U.S. Dollar, Euro, and Pound Sterling revolving loans and creates an uncommitted incremental credit facility that may be used for additional term or ...

The credit card-focused bank pays out a lot of money to its shareholders. American Express (AXP -2.68%) is one of the largest financial institutions in the United States and like most large banks, pays a quarterly dividend. While its dividend yield of about 1.2%, as of this writing, doesn't exactly make it a "high dividend" stock, you might be surprised at how much money the company sends to its shareholders each year. How much will American Express pay out in dividends this year? Let's start with the short ...

B of A Securities analyst Kenneth Bruce downgraded American Express Co AXP from Buy to Neutral with a price target of $263. The stock price slid after the rerating. Given the potential for subdued billings volume growth and current premium valuation, Bruce sees limited incremental upside for the stock. Also Read: American Express Q2 Earnings: CEO Raises Annual Profit And Marketing Spend Outlook After Q2 Profit Beat While the analyst maintained a favorable view of American Express's long-term execution and s ...

The credit card giant continues to win among younger shoppers. Investors have underrated American Express (AXP 1.85%) for years. Competing payment networks Visa and Mastercard dominate the payments discussion and trade at premium valuations. And yet, over the past five years, American Express stock is actually outperforming both Visa and Mastercard. I bet few people would assume this was the case. Less than two weeks ago, American Express hit an all-time high after posting strong earnings yet again for the ...

Owning this business might be a good chance to gain exposure to the financial services industry. Known for its premium credit card offerings, American Express (AXP 1.85%) is a powerhouse in the financial services sector. And if you have any doubts about this being a quality enterprise, it's worth noting that Warren Buffett-led Berkshire Hathaway is a major investor, owning more than 21% of the business. American Express is taking a hit in the past few days. Should investors buy this financial stock while it ...

This thriving financial stalwart's share price has doubled over the past five years. Operating a unique business model This unique setup means the company benefits in multiple ways nearly every time its cards are swiped. It earns annual fees ($2.1 billion in Q2) from cardholders, as well as interest income from consumers who maintain balances. And Amex collects what's known as discount revenue (accounting for 54% of its Q2 revenue, the most of any single source) from the merchants plugged into its system. T ...

Core Viewpoint - American Express reported mixed fiscal 2024 second-quarter results, with an EPS beat driven by a lower provision, while Pre-provision Net Revenue (PPNR) was in line with expectations [2][3]. Financial Performance - The second quarter showed slower revenue growth, with the likelihood that revenue could end at the low end of guidance, leading to underperformance in shares [3][4]. - The company intends to invest $6 billion in marketing this year, leveraging better credit results to position for revenue growth into 2025 [5]. Outlook and Projections - Analysts expect revenue growth to come in towards the lower end of expectations, but anticipate a re-acceleration in card fees and improvement in small businesses [4][5]. - Core EPS estimates for fiscal 2024, 2025, and 2026 have been revised to $13.80, $15.00, and $17.45, respectively [6]. Analyst Ratings - Goldman Sachs analyst maintained a Buy rating and raised the price target from $263 to $270, while RBC Capital Markets analyst maintained an Outperform rating and raised the price target from $265 to $267 [2][6]. - Analysts express optimism about the long-term mid-teens EPS growth being achievable and sustainable, even in a slower revenue environment [7][8].

Land Free Wings with Fatburger Meal, Plus Chance to Score Custom Gold Chicken Wing Bling LOS ANGELES, July 22, 2024 (GLOBE NEWSWIRE) -- Fatburger and Buffalo's Express, the beloved cobranded burger and wing concept owned by FAT Brands Inc., is bringing the bling this National Chicken Wing Day. Starting on July 29 (National Chicken Wing Day) and shining through Aug. 4, fans can scoop up a FREE order of three-piece wings with the purchase of any Fatburger Meal when ordering online through order.fatburger.com ...