With a 5-year dividend growth rate of 14.67%, American Express Company (NYSE:AXP) is included among the 10 Best Dividend Growth Stocks to Buy and Hold for 3 Years.
On May 22, Loop Capital initiated coverage on American Express Company (NYSE:AXP) with a Buy rating. The firm also set a $389 price target on the stock. The firm said it sees a “stable to improving” outlook for the financial sector and named American Express as its top pick. The analyst told investors in a research note that the stock could continue to move higher despite uncertainty in the broader macro environment. According to the firm, concerns about AI-driven layoffs have pressured American Express’s valuation multiple and created what it views as an attractive entry point for investors.
Loop Capital also said American Express has a broader customer base, which it believes should limit the impact that AI-related job losses could have on the company’s revenue growth.
In separate news on May 20, American Express and Fanatics announced a strategic partnership. Under the agreement, American Express will become the Official Payments Partner across select Fanatics online and retail locations worldwide. The company will also serve as a presenting sponsor for Fanatics Fest, one of the largest annual sports fan festivals held in New York City.
The companies also announced the upcoming launch of the new Fanatics American Express® Card, which will run on the Amex Network and is expected to launch later this year. The card is designed to give sports fans additional rewards and experiences tied to their fandom.
American Express Company (NYSE:AXP) is a global payments and premium lifestyle brand powered by technology. Its businesses include card issuing, merchant acquiring, and payment network services, serving consumers, small businesses, mid-sized companies, and large corporations around the world.
While we acknowledge the potential of AXP as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
READ NEXT: 10 High Quality Stocks to Buy According to Hedge Funds and 10 Best Long Term Low Risk Stocks to Buy According to Hedge Funds
Disclosure: None. Follow Insider Monkey on Google News.
Disclaimer : This story is auto aggregated by a computer programme and has not been created or edited by DOWNTHENEWS. Publisher: finance.yahoo.com
