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]

Core Viewpoint - Berkshire Hathaway has achieved a remarkable 40,000% increase in shareholder capital over the past 40 years under Warren Buffett's leadership, with American Express being a significant holding that may attract average investors [1] Company Overview - American Express represents 13.8% of Berkshire Hathaway's portfolio, with the conglomerate controlling about one-fifth of the business [1] - The stock is currently trading 28% below its record high, influenced by a 10% drop on April 3 due to concerns over tariffs affecting spending [2] Competitive Advantage - American Express is considered a "wonderful" company due to its strong brand positioned as a premium offering in the credit card market [3][4] - The company benefits from a powerful economic moat, characterized by high annual fees, top-notch rewards, and valuable partnerships that attract high-spending consumers [5] - Its two-sided platform creates a network effect, enhancing value for both cardholders and merchants [6] Financial Performance - Over the past five years, American Express has seen revenue grow at a compound annual rate of 8.7%, with diluted earnings per share (EPS) increasing at an annual pace of 11.9% [8] - Wall Street consensus estimates project EPS to grow at an annualized rate of 14.5% over the next three years, indicating strong bottom-line growth potential [9] Valuation and Investment Outlook - The stock's valuation has become more attractive, trading at about 16 times forward earnings, down from a peak forward P/E ratio of 21.2 [10] - Even if the valuation remains constant, projected EPS doubling in the next five years could lead to a 100% gain on the stock [11]

Group 1 - Fortune collaborated with Korn Ferry on a survey of corporate reputations, starting with approximately 1,500 candidates [1] - The candidates included the 1,000 largest U.S. companies ranked by revenue and non-U.S. companies from Fortune's Global 500 database [1]

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 ...

Core Insights - Dividends play a crucial role in investor returns, with 85% of the S&P 500's cumulative total return since 1960 attributed to reinvested dividends and compounding [1] - Companies that grow their dividends significantly outperform non-payers and those with static payouts, delivering 10.2% average annual returns from 1973 to 2023 compared to 4.3% for non-payers [2] - Payout ratios below 75% indicate greater financial flexibility for companies, allowing them to maintain or increase dividends during economic challenges [3] Company Summaries Costco - Costco operates a membership-based warehouse retail model that thrives in a competitive landscape, focusing on exceptional value through bulk purchasing [4] - The company has strong business fundamentals, with membership renewal rates exceeding 90% in the U.S. and Canada, generating reliable revenue from membership fees [5] - Despite a modest 0.51% dividend yield, Costco boasts a 12.6% 10-year dividend growth rate and a conservative 27% payout ratio, allowing for continued dividend growth and investment in expansion [6][7] Visa - Visa operates one of the largest payment processing networks globally, benefiting from powerful network effects that enhance its competitive position [8] - The company's business model generates exceptional margins with minimal capital expenditures, resulting in substantial free cash flow for business investment and shareholder returns [9] - Visa's 17.5% 10-year dividend growth rate and a disciplined 21.7% payout ratio reflect a balance between reinvestment and shareholder rewards, positioning it well for growth as economies transition to digital payments [10][11] American Express - American Express targets affluent consumers and businesses with its integrated payment and lending model, cultivating a loyal customer base through its premium brand image [12] - The company is expanding its merchant acceptance network while leveraging its closed-loop network for enhanced risk management and marketing effectiveness [13] - With a 1.24% dividend yield and a 10.7% 10-year dividend growth rate, American Express has a disciplined 20% payout ratio, providing capacity for future dividend increases as it focuses on younger consumers and small businesses [14][15]

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 ...