Investors debate buying American Express just below $300, caution advised due to high valuation

From Nasdaq: 2025-03-01 18:23:00

American Express (NYSE: AXP) has seen its share price rise by 268% in the past decade, resulting in a total return of 326%. Investors are debating whether to buy the stock as it trades just below $300. The company’s wide economic moat, strong brand, and growth trajectory are appealing factors. However, some caution is advised due to the stock’s current high valuation. While American Express has a history of outperforming the S&P 500, the current P/E ratio of 21.1 may deter some investors from initiating new positions at this time.

In the financial services industry, American Express stands out with its successful business model and growth. However, investors should weigh the pros and cons of buying the stock, considering its premium valuation. With Warren Buffett’s Berkshire Hathaway as a major shareholder, American Express has proven its worth over the years. Still, a closer look at the stock’s current valuation and future outlook is recommended before making any investment decisions.



Read more at Nasdaq: Should You Buy American Express While It’s Below $300?