Several analysts have reiterated their positive ratings of American Express Company as one of the best stocks to buy if one is looking for exposure to credit services providers.
Christopher Kennedy, an analyst at William Blair, reaffirmed on October 20 that AMEX was one to buy. He pointed out the company’s growth trajectory and its strong position within the market as major reasons supporting the Buy rating. Kennedy also cited the fact that American Express has remained the leader within the premium card vertical and that its shares were trading at a price that was low relative to the S&P 500.
Kennedy says the long term value of American Express is assured because the management has focused on making strategic investments and has put emphasis on securing sustainable earnings. The return on equity provided by the company is also superior to its peers within the segment, which makes it worthwhile for investors to acquire stock in the firm, Kennedy added.
The company has also increased its focus on serving premium clients while also deepening their reach within small businesses. This has boosted customers’ interest in Amex, a development that positions the company well for sustaining its market leadership well into the future. Account acquisitions have also doubled, strengthening the customer base of the company.
William Blair isn’t the only firm rating American Express positively. Truist Financial also maintained its Buy rating on American Express on October 20. Their price target for American Express shares is $395, indicating that the company stock still has plenty of room to climb given its position within the market and the fundamentals underpinning the firm.
RBC Capital also believes that American Express stock will outperform. On October 13, RBC Capital upgraded their stock price expectation for the company from the $360 they had previously indicated, to $380. They cite the outlook of the company’s earnings growth, the strong base of customers, and competitive credit facilities as reasons to support their upgraded rating of American Express stock.
For investors that are looking to acquire stock in companies that have been tried and tested, American Express offers an opportunity that can be further studied and compared to other options before making an investment decision. For existing stockholders like Berkshire Hathaway Inc. (NYSE: BRK.A) (NYSE: BRK.B) that believe in buying and holding stock acquisitions in great companies, the ratings issued by these leading analysts could provide no more than additional proof that BRK decision-makers made the right call when they selected American Express as a company to invest in.
About TrillionDollarClub
TrillionDollarClub (“TDC”) is a specialized communications platform with a focus on the biggest and brightest companies covered by IBN. It is one of 75+ brands within the Dynamic Brand Portfolio @ IBN that delivers: (1) access to a vast network of wire solutions via InvestorWire to efficiently and effectively reach a myriad of target markets, demographics and diverse industries; (2) article and editorial syndication to 5,000+ outlets; (3) enhanced press release enhancement to ensure maximum impact; (4) social media distribution via IBN to millions of social media followers; and (5) a full array of tailored corporate communications solutions. With broad reach and a seasoned team of contributing journalists and writers, TDC is uniquely positioned to best serve private and public companies that want to reach a wide audience of investors, influencers, consumers, journalists, and the general public. By cutting through the overload of information in today’s market, TDC brings its clients unparalleled recognition and brand awareness.
TDC is where breaking news, insightful content and actionable information converge.
To receive SMS alerts from TrillionDollarClub, text “Trillion” to 888-902-4192 (U.S. Mobile Phones Only)
For more information, please visit https://www.TrillionDollarClub.net
Please see full terms of use and disclaimers on the TrillionDollarClub website applicable to all content provided by TDC, wherever published or re-published: https://www.TrillionDollarClub.net/Disclaimer
TrillionDollarClub
Austin, TX
www.TrillionDollarClub.net
512.354.7000 Office
[email protected]
TrillionDollarClub is powered by IBN
