American Express: A Potential 'Forever Hold'

PropNotes
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Summary

  • American Express is a compounder, a stock that can grow at a higher-than-average rate for years and years.
  • AXP has a high-moat business and is insulated from regulatory, monetary, and other risks.
  • AXP has shown consistent growth in revenues and profits, has been buying back shares, and has outperformed the S&P 500.
  • We expect these dynamics to continue well into the future due to the firm's strong competitive position.
  • We rate AXP a "Buy".

American Express Global Brand Launch

Bryan Bedder/Getty Images Entertainment

In the world of stocks, there are many great public companies that have a solid return on invested capital, a strong set of products and services, and a competent management team.

However, there are comparatively few

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Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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