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NYSE:AXP

American Express (AXP)

339.67
+1.67 (0.49%)
as of Jun 18, 2026, 11:53:58 pm Market Open.
68 watching
0
WAIT

As retail sales improve, the credit card companies will go up. However, they have already been bid up a lot, so thinks they are fully priced now.

TOP PICK

Have a lot of the credit concerns behind them. Theoretically they are dealing in the wealthier segment of the market. In the last 4 years, the have spent any excess capital into their technology. Thinks they are going to make some really big strides in mobile payments, digital processing and that whole area. Yield of 1.34%.

COMMENT

This is a different model from MasterCard (MC-N) and Visa (V-N). This is a charge card and the others are credit cards. The other 2 have done quite a bit better than this one.

DON'T BUY
Credit card companies have had a big run and Visa has done spectacularly. We are seeing a decrease in savings rate in US again. People are paying down their credit cards with lines of credit, which is not a net reduction in personal debt. Going into next year you are going to start to see a fiscal drag on the economy. That is a big market for the credit card companies. Fewer transactions and more delinquencies. Don’t go into this space.
PAST TOP PICK
(A Top Pick July 22/11. Down 3.17%.)
TOP PICK
Record card member spending. Up 6% in the US. Up 20+% overseas. Credit card losses are collapsing. They customers are higher end consumers and pay off their bills normally. Earnings are booming.
BUY
This one is an exception in that anything doing with US financials has not done well. Had a major sell off in 2008 followed by a wonderful recovery in 2009. Has now stayed in a narrow trading range followed by a breakout this year and looks like it is starting a new major up leg.
HOLD
5.9% Cdn$ bond maturing April 2013. Hold or sell?
BUY
Very well priced and trading at about 11-12 times earnings. Earnings are growing at about 11%. (See Top Picks.)
DON'T BUY
Trading at 29X forward earnings and under 10X price to cash flow. Considers this in the bank sector and he wants only the best bank/firm in this space such as Bank of America (BAC-N) or Goldman Sachs (GS-N). He owns both.
DON'T BUY
Has no exposure to credit card companies. There is a case to be made for global growth with either Visa (V-N) or American Express (AXP-N) but with savings rates rising, there could be a bit of a challenge from an earnings standpoint. Would prefer asset managers that could participate from a fee standpoint, or a custodian such as State Street (STT-N).
DON'T BUY
Not particularly enamoured with this company. Credit card defaults are probably going to take a little more centre stage in the US over the next little while.
DON'T BUY
Expect it could run out of gas like many of the financials. Will be completely dependent on the economy. Prefers Visa (V-N) because it does not have the credit risks.
BUY
Has a great deal of strength. Revenue in transaction business and brokerage.
DON'T BUY
Hit along with all financial service companies. US credit card companies are having higher and rising default rates. Theirs is not just a transaction card but also a credit card.
Showing 91 to 105 of 124 entries