From Nasdaq:

American Express Company AXP is expected to experience growth due to an increase in card member spending. The company’s market cap is $132.7 billion, and it is a Zacks Rank #2 (Buy) stock, with a projected 2023 earnings of $11.23 per share, indicating 14% year-over-year growth.

The company’s total revenues for the current year are estimated at $60.7 billion, with anticipated growth of around 15% year over year in 2023. Both Billed Business and Processed Volumes are expected to contribute to sustained growth, along with a focus on small and medium-sized enterprises.

American Express’ financial position is solid, with strong cash generation and a return on equity of 30.6%. Additionally, the company is dedicated to enhancing shareholder returns, having allocated $2.6 billion to share buybacks and distributed $1.3 billion in common stock dividends in the initial nine months of 2023.

However, investors should be aware of escalating expenses, which are putting pressure on the company’s margins, and a relatively higher price-to-earnings multiple compared to its industry peers. Despite this, the company is expected to drive growth in the long term through a strategic plan of action.

Other top-ranked stocks from the finance sector include Cboe Global Markets CBOE, Coinbase Global COIN, and Assurant, Inc. AIZ, each with their own positive indicators and growth potential. The Zacks Top 10 Stocks for 2024 have been handpicked for their potential and past success, offering an opportunity for investors to get in early on these top tickers.



Read more: Here’s Why You Should Buy American Express (AXP) Stock Now