Down 17% in 3 Months: Time to Buy American Express Stock?
Shares of integrated-payments network and credit card company American Express (NYSE: AXP) jumped earlier this year, following the company's strong fourth-quarter results and news that management was guiding for more impressive double-digit revenue growth in 2023. But a regional banking crisis and rising credit-crunch risks have spooked investors in financial stocks. Since American Express finances its own network of credit cards, it has more exposure to some of the financial risks associated with business and consumer debt than some of its credit card peers that outsource their financing.
But a closer look at American Express reveals good reasons to be bullish on the stock -- especially now that shares have retreated significantly from levels above $180 earlier this year. The company's premium clientele, prudent risk management, strong guidance, and robust dividend show that the stock's pullback may be driven more by fear than facts.
If we're on the brink of a recession, you wouldn't know it by the company's first-quarter results. First-quarter revenue increased 22% year over year -- an acceleration from 17% growth in Q4. Further, management reiterated its full-year guidance for total 2023 revenue to increase 15% to 17% year over year.
Source Fool.com
