2024-05-20 17:48:47 ET
Summary
- American Express shares have performed well, rising 60% in the past year, thanks to its exposure to higher-income customers and strong growth with millennials.
- The company's recent financial performance has been positive, with earnings beating expectations and a better credit performance than peers.
- That said T&E spending may slow, which will contribute to slower earnings growth making its 18.5x valuation relatively expensive.
Shares of American Express ( AXP ) have been an excellent performer over the past year, rising about 60%. Its exposure to higher-income customers has helped to insulate the company from consumers’ diminished excess savings, and it continues to generate strong growth will millennials. I last covered AXP in December , rating shares a buy, and since then, AXP has returned 42%, though the extent of its rally has exceeded my expectations. As such, it is time to see if valuation has caught up to its solid fundamentals....
Read the full article on Seeking Alpha
For further details see:
American Express: A Full Valuation Given Growth May Slow (Downgrade)