Jenny Harrington, CEO, Gilman Hill Asset Management American Express AXP-N PARTIAL SELL Nov 15, 2024

Reported today but shares are down. They are being conservative. The US consumer was +12%, card fees 18%, NII 15%--all good numbers. Also, shares are up so much this year. A good story.

They have lots of runway: they issued 3.3 million new cards were issued last quarter with 80% to Millennials and GenZ. Don't trade, but invest in this.

Wall Street got their quarter wrong again. It hit $286, a new high, last Thursday, but tumbled 2.19% today. Revenues were in-line at 6% in their total spending in their cards, and expenses were 9% YOY, but below estimates, and they beat EPS, but they slightly trimmed their full-year revenue growth forecast, but Millennials/GenZ spending is up 12% YOY, the Boomers are flat while GenX is 4%. Delinquencies look good, not that bad. Wall Street didn't like their gradual slowdown in revenue growth.

Does not own shares, but does own Mastercard. Overall, a strong sector with move towards cashless society. Well positioned for the future. Would recommend holding. 

A bit more credit risk than other names. All the credit card companies are good, but he prefers and owns Visa.

It reports Friday. Every time it reports, the stock takes a hit that day, but AXP has had a juggernaut run in recent years.

Positioned higher on the socio-economic side than Visa or MA, so it doesn't have a lot of credit problems. Absolutely spectacular track record. Extremely profitable right through the entire financial crisis. Earnings growth at the 15% annualized level, trades at only 18x. Excess cash generation. Repurchased ~40% of stock in last 20 years. Yield is 1.17%, keeps jacking it up.

Also a core holding of his good friend Warren Buffett ;)

It reports Thursday. It trades on new card sign-ups, especially from young people and he expects that in the report. But careful: they usually trades badly in the morning of a report, then reverses. Listen to the call before deciding.