We came across a Bullish Essay On American Express Company on Chit Chat Stocks Circular by Brett Schafer. In this article, we will summarize the Bulleuer thesis on AXP. American Express Company's share was trading at $ 298.59 on June 20 20th. Drag and onwards ratios were 20.85 and 19.76, respectively, according to Yahoo Finance.
A close hand holds a credit card, representing the companies multi-level payment services.
American Express remains a high quality business that has a strong long -term potential, but the author holds out for a wider market panic to buy for more attractive valuations. Q1 2025 Results reaffirmed the company's strength: unpaid shares decreased by 3% YOY, the dividend was raised by 17%, and business grew 7% bills except a leap day, driven by 14% growth of Gen Z and Millennials and 13% internationally.
Fixed elimination rates and 3.4 million new card acquisitions are a robust customer engagement signal. American Express continues to strengthen its network effects – more cards lead to more trader value – and it is gaining international ground, especially among younger consumers. With $ 4.4 billion spent on last quarter's awards, earnings rose, thanks to the company's vertical integrated model.
Unlike Visa or Mastercard, Amex owns the network and customer relationships, enlarging its competitive edge as it graduates. 2025 EPS guidelines start at $ 15, suggesting forward P/E of 17.7 – solid, though not yet deal. The author sees the potential for 10%+ annual EPS growth driven by GDP-Plus revenue expansion, inflation tail, and sharing purchases. This year's Key Catalyst is the expected Platinum Cards overhaul, which could see the annual fee rise to $ 1,000 and help maintain 20%card fee revenue growth.
While current performance is impressive, the author prefers to wait for the weakness of market -driven prices, especially from consumer stress events, to accumulate shares around 10x normalized earnings. Given its durable growth and competitive trench, Amex remains a “never sell” candidate – if he has been bought for the right price.
Previously we covered a Bullish Essay On American Express Company by Daan Rijnberk in April 2025, which highlighted its vertical integrated model, premium customer base, and strong international growth. The company's stock price has appreciated around 17% since our scope. This is because the thesis plays out. Brett Schafer shares similar views but emphasizes purchasing during wider market displacements.
American Express Company is not on our list of 30 most popular stocks among hedge funds. In line with our database, 75 portfolios held AXP hedgerow fund at the end of the first quarter, which was 71 in the previous quarter. While we recognize the risk and potential of AXP as an investment, our conviction lies in the belief that some AI stocks are more promised about providing higher gains and we have a risk of limited disadvantage. If you are looking for a very cheap AI stock that is also a major beneficiary for Trump tariffs and undermines, see our free report on the The best short -term stock.