American Express: Buy, Sell, or Hold?

Motley Fool12-20 18:13

American Express' premium brand status helps it draw in a lucrative customer group. Higher earnings power over time allows management to return lots of capital to shareholders. The ...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2492938416?lang=en_US&edition=fundamental","thumbnail":"https://g.foolcdn.com/image/?url=https%3A%2F%2Fg.foolcdn.com%2Feditorial%2Fimages%2F801278%2Fpulling-credit-card-from-front-jacket-pocket.jpg&op=resize&w=165&h=104","is_english":true,"pubTime":"2024-12-20 18:13","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"2492938416","market":"us","top_or_hot":-1,"title":"American Express: Buy, Sell, or Hold?","media":"Motley Fool","content":"<div>\n<p>American Express' premium brand status helps it draw in a lucrative customer group.\n\n\n\n\n\n\n\nHigher earnings power over time allows management to return lots of capital to shareholders. \n\n\n\n\n\n\n\nThe ...</p>\n\n<a href=\"https://www.fool.com/investing/2024/12/20/american-express-buy-sell-or-hold/\">Source Link</a>\n\n</div>\n","source":"fool_stock","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>American Express: Buy, Sell, or Hold?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nAmerican Express: Buy, Sell, or Hold?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-12-20 18:13 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.fool.com/investing/2024/12/20/american-express-buy-sell-or-hold/><strong>Motley Fool</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>American Express' premium brand status helps it draw in a lucrative customer group.\n\n\n\n\n\n\n\nHigher earnings power over time allows management to return lots of capital to shareholders. \n\n\n\n\n\n\n\nThe ...</p>\n\n<a href=\"https://www.fool.com/investing/2024/12/20/american-express-buy-sell-or-hold/\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"IE00BFSS7M15.SGD","symbol_name":"Janus Henderson Balanced A Acc SGD-H","start_time":0,"source_url":"https://www.fool.com/investing/2024/12/20/american-express-buy-sell-or-hold/","article_id":"2492938416","we_media_id":null,"thumbnails":["https://g.foolcdn.com/image/?url=https%3A%2F%2Fg.foolcdn.com%2Feditorial%2Fimages%2F801278%2Fpulling-credit-card-from-front-jacket-pocket.jpg&op=resize&w=165&h=104"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2492938416","pubTimestamp":1734689580,"columns":[],"sourceInfo":{"source_id":"fool_stock","name":"Motley Fool"},"weMediaInfo":null,"summary":"American Express' premium brand status helps it draw in a lucrative customer group.Higher earnings power over time allows management to return lots of capital to shareholders.The valuation isn't at an extreme level, making this stock a smart one to hold.American Express  shares have been on an absolute tear. In the past 14 months, they have catapulted 100% higher , consistently hitting fresh all-time highs throughout 2024.After such a monumental gain in a short period of time, investors are probably wondering what the best course of action is as it relates to American Express and their portfolios. Should you buy, sell, or hold this financial stock?","collect":0,"end_time":0,"defaultTopTitle":"fool.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"IE00BFSS7M15.SGD":"Janus Henderson Balanced A Acc SGD-H","LU1917777945.USD":"安联专题基金Cl AT Acc","LU1974910355.USD":"Allianz Thematica Cl AMg DIS USD","BK4585":"ETF&股票定投概念","IE00BN29S564.USD":"JANUS HENDERSON BALANCED \"A3\" (USD) INC","IE00BJJMRX11.SGD":"Janus Henderson Balanced A Acc SGD","LU0094547139.USD":"abrdn SICAV I - GLOBAL SUSTAINABLE EQUITY FUND \"A\" (USD) ACC","LU0942090050.USD":"UBS (LUX) EQUITY SICAV - US TOTAL YIELD SUSTAINABLE \"P\" (USD)  INC","LU2106854487.HKD":"ALLIANZ THEMATICA \"AMG\" (HKD) INC","LU0266013472.USD":"AXA WF - Framlington Longevity Economy A Cap USD","IE00BJJMRY28.SGD":"Janus Henderson Balanced A Inc SGD","LU0868494708.USD":"UBS (LUX) EQUITY SICAV - US TOTAL YIELD SUSTAINABLE \"P\" (USD) INC","LU2023250504.SGD":"Allianz Thematica Cl AMg DIS H2-SGD","IE00BSNM7G36.USD":"NEUBERGER BERMAN SYSTEMATIC GLOBAL SUSTAINABLE VALUE \"A\" (USD) ACC","LU0310799852.SGD":"FTIF - Templeton Global Equity Income A MDIS SGD","BK4588":"碎股","IE00B775H168.HKD":"JANUS HENDERSON BALANCED \"A5M\" (HKD) INC","LU1861217088.USD":"贝莱德金融科技A2","IE0005OL40V9.USD":"JANUS HENDERSON BALANCED \"A6M\" (USD) INC","IE0004445015.USD":"JANUS HENDERSON BALANCED \"A2\" (USD) ACC","LU0011850046.USD":"贝莱德全球长线股票 A2 USD","LU1861220207.SGD":"Blackrock FinTech A2 SGD-H","AXP":"美国运通","LU0130102774.USD":"Natixis Harris Associates US Equity RA USD","LU0648001328.SGD":"Natixis Harris Associates US Equity RA SGD","LU1674673691.USD":"HSBC GIF GLOBAL LOWER CARBON EQUITY \"AD\" (USD) INC","LU0868494617.USD":"UBS (LUX) EQUITY SICAV - US TOTAL YIELD SUSTAINABLE \"P\" (USD) ACC","BK4166":"消费信贷","IE00BFSS8Q28.SGD":"Janus Henderson Balanced A Inc SGD-H","BK4559":"巴菲特持仓","LU1674673428.USD":"HSBC GIF GLOBAL LOWER CARBON EQUITY \"AC\" (USD) ACC","LU2552382215.SGD":"WELLINGTON US BRAND POWER \"A\" (SGDHDG) ACC","LU1267930490.SGD":"TEMPLETON GLOBAL EQUITY INCOME \"AS\" (SGD) INC A","LU1778281490.HKD":"HSBC GIF GLOBAL LOWER CARBON EQUITY \"AD\" (HKD) INC","LU0211327993.USD":"TEMPLETON GLOBAL EQUITY INCOME \"A\" (USD) ACC","LU2360107671.USD":"BGF FINTECH \"A4\" (USD) INC","LU2552382058.USD":"WELLINGTON US BRAND POWER \"A\" (USD) ACC","LU2552382132.HKD":"WELLINGTON US BRAND POWER \"A\" (HKD) ACC","LU1201861249.SGD":"Natixis Harris Associates US Equity PA SGD-H","IE00B7KXQ091.USD":"Janus Henderson Balanced A Inc USD","LU0211328371.USD":"TEMPLETON GLOBAL EQUITY INCOME \"A\" (MDIS) (USD)   INC","IE00B4JS1V06.HKD":"JANUS HENDERSON BALANCED \"A2\" (HKD) ACC","LU0980610538.SGD":"Natixis Harris Associates US Equity RA SGD-H"},"translate_title":"美国运通：买入、卖出还是持有？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"AXP":1},"content_text":"American Express' premium brand status helps it draw in a lucrative customer group.\n\n\n\n\n\n\n\nHigher earnings power over time allows management to return lots of capital to shareholders. \n\n\n\n\n\n\n\nThe valuation isn't at an extreme level, making this stock a smart one to hold. \n\nAmerican Express (AXP 1.84%) shares have been on an absolute tear. In the past 14 months, they have catapulted 100% higher (as of Dec. 16), consistently hitting fresh all-time highs throughout 2024.After such a monumental gain in a short period of time, investors are probably wondering what the best course of action is as it relates to American Express and their portfolios. Should you buy, sell, or hold this financial stock?Durable competitive strengthsAmerican Express is a quality enterprise because it possesses an economic moat. This means that it has durable competitive advantages that have solidified its industry position, protecting it from rivals. I believe Amex possesses two primary strengths in this regard.The company's brand is one critical part of its moat. By presenting itself as a premium credit card brand, American Express is able to attract an affluent customer base. These people have the ability to spend more than the average person.Targeting this demographic means that American Express can charge high annual fees for some of its top credit cards. But this hasn't prevented the number of active cards from climbing over time, from 111.1 million in the third quarter of 2014 to 145.5 million in the last quarter. Even more noteworthy, the business has generated higher average fees per card, a figure that increased 13% year over year in Q3. The Amex brand is also doing a great job resonating with a younger demographic. \"Spend across our affluent U.S. consumer base continued to be very stable with strong growth from millennial and Gen-Z customers, up 12%,\" CFO Christophe Le Caillec said on the Q3 2024 earnings call. That was faster growth than any other cohort. The business can benefit because these consumers could be customers for a very long time.American Express also benefits from powerful network effects. All of those active cards in use across the globe are incredibly valuable for merchants that don't want to miss out on potential revenue generating opportunities. On the flip side, Amex's acceptance at 89 million merchant locations worldwide gives cardholders plenty of places to spend their money. As each group increases in size, the value of the Amex network grows.Steady financial performanceAmerican Express has seen healthy growth trends thanks generally to rising spending that occurs across the economy. The popularity of cashless transactions also provides a lift.The result is a steady increase in payment volume, which totaled $441 billion in Q3, up 5% year over year. Unsurprisingly, this is boosted by Amex bringing on new card members. It also gets help from the company's many valuable partnerships, like those with Delta Air Lines, Marriott International, and Uber Technologies, that allow consumers to earn more rewards, incentivizing spending activity.This has spurred revenue growth over the years. In the last decade, the top line has nearly doubled. And with a 15% net income margin in Q3, this is a consistently profitable business.Investor returns are bolstered by management's capital allocation practices, which themselves are only possible because Amex is very profitable. So far in 2024, the business has paid $1.5 billion in dividends and repurchased $5 billion worth of outstanding shares.Amex's valuationAmex shares' impressive performance in the past year or so has made the stock more expensive. As of this writing, the stock trades at a price-to-earnings (P/E) ratio of 22.3. This represents a premium to its trailing three-, five-, and 10-year average P/E multiples. It's safe to say that the current setup for prospective investors isn't exactly a bargain.However, I believe there are a lot of reasons to appreciate Amex's business, from its competitive strengths to its steady growth, consistent profits, and capital returns. What's more, the current valuation isn't at an extreme level.So, if you've been a shareholder, I don't believe there's a reason to sell right now, making the stock a solid hold today.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.3","shortVersion":"4.29.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2492938416"}