1 of Warren Buffett's Favorite Stocks Just Provided Stellar Guidance for 2023
Credit card and payments company American Express (NYSE: AXP) has long been a favorite of legendary investor Warren Buffett. His conglomerate, Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B), first invested in American Express in 1994, and he hasn't looked back. It's now the fourth-largest position in the Berkshire Hathaway equity portfolio, accounting for 7.5% of its assets.
In conjunction with the release of its fourth-quarter results, American Express provided stellar guidance despite the uncertain economic outlook, leading to a run-up in shares. Let's take a look at that guidance and why the company could achieve it.
American Express is guiding for 15% to 17% revenue growth this year and earnings per share of $11 to $11.40. That upbeat forecast caught the Street off guard because many economists are expecting a mild recession this year. Recessions usually cause slowdowns in consumer spending as well as higher loan defaults, both of which would hurt American Express.
Source Fool.com
