From Yahoo Finance: 2025-04-15 12:01:00

American Express (AmEx) is trading at $255.38 with a trailing P/E of 18.23 and a forward P/E of 16.75. AmEx’s vertically integrated business model allows for direct relationships with customers, resulting in higher transaction fees. It handles $1.7 trillion in transactions annually, with a 19% market share in the U.S.

AmEx’s revenue comes from merchant fees (53%), cardholder fees (13%), and net interest income (24%). The company focuses on high-income individuals, reducing credit risk. Resilient in stress tests, AmEx saw record revenue and card growth in 2024, with a 10% increase in revenue year-over-year.

AmEx retains 98% of premium cardholders and has successfully expanded internationally. The company’s loan portfolio is stable, with low delinquency rates. Operating expenses have decreased, and shareholders are rewarded through dividends and share repurchases. The stock, currently trading at an 18% discount, presents a strong investment opportunity.

71 hedge fund portfolios held AXP at the end of the fourth quarter. While AXP has potential, some AI stocks may offer higher returns in a shorter timeframe. For promising AI stocks trading at less than 5 times earnings, consider alternatives. Explore the report for the cheapest AI stock and consider other investment opportunities.



Read more at Yahoo Finance: American Express Company (AXP): A Bull Case Theory