This Stock Is Approved By The Oracle

Buffett loves this stock [View in browser]( Proprietary Data Insights Financial Pros Top Credit Card Searches in the Last Month Rank Name Searches #1 Visa 1,435 #2 Mastercard 859 #3 American Express 632 #4 Capital One Financial 500 #5 Discover Financial Services 100 #ad [Don’t drink the Kool-Aid, sip on The Juice…]( Brought to you by [InvestingChannel]( [3 Top Investment Trends for 2023 & Beyond]( Inflation is out of control. The Fed plans to hike rates until we’re all in the poorhouse. And there’s a recession right around the corner… But you don’t have to settle for doom and gloom. In this free exclusive report, we dive into three key investment trends – and our top recommendations to play them to grow your wealth. [Go here to learn where to put your money for 2023 and beyond.]( Credit Cards This Stock Is Approved By The Oracle With just a few more weeks left until Christmas, we expect gift buying to kick into full gear. The difference is this year will see more sales online with credit cards as the preferred method of payment. That’s why we weren’t surprised to see credit card company searches rise over the last few weeks in our Trackstar data, especially from financial pros. While Visa (V) and Mastercard (MA) topped the search results, it was American Express (AXP) that drew our attention. Warren Buffet has never been shy about owning a huge stake in AXP, which currently sits at $23 billion worth. But is that all you need to know before investing? AXP isn’t just a credit card company. Like DFS, they hold loans, making them somewhere between a payment processor like Visa American Express’s Business Founded in 1850 and headquartered in New York, American Express has a rich history in the consumer finance sector. The company specializes in issuing payment cards to consumers. It also offers banking services, travel brokerage, and magazine publishing. AXP has 56.4 million cards in the U.S., controlling nearly 19% of the domestic credit card market. The firm generates more than half its revenues from payments to consumers, followed by payments to small and big corporates and managing partner networks. AXP breaks its sales into the following segments: Consumer Services, Commercial Services, International Card Services, and Global Merchant and Network Services. [Financials] Source: American Express You’ll also notice that the company earns interest on loans it makes. Unlike straight payment processors like Visa or Mastercard, American Express offers customers loans on things like cars and homes. AXP is a member of the Dow Jones Industrial Averages. One of its largest investors is Warren Buffett, who owns more than $23.7 billion worth of stock. Financials [Financials] Source: stockanalysis.com AXP experienced significant and consistent growth over the years. Its revenues climbed from $33.4 billion in 2016 to $43.8 billion in 2021. Over the last twelve months, the firm has made $49.6 billion in revenues. The company has $31.3 billion in cash and total debt of $43.9 billion. It’s in a stable financial position, evidenced by its 1.6x current ratio and annual dividend payout of $2.08. Additionally, its operating cash flow stands at a whopping $17.6 billion. The firm’s credit metrics remain strong even as it steadily rebuilds loan balances, with delinquencies and write-offs continuing to be low. And despite the softness in the economy, the company has not experienced changes in spending behavior from its customers. Valuation[valuation] Source: Seeking Alpha While AXP has a higher P/E GAAP Ratio (15.6x) than its rivals Capital One Financial (COF) at 4.7x, Discover Financial Services (DFS) at 6.8x, it’s much cheaper than Mastercard (MA) at 34.7x and Visa (V) at 29.9x. One thing distinguishing AXP from its competitors is that it caters to customers with high credit scores and ultra-high net worth individuals. That helps it keep relatively low loan defaults. AXP trades at a price-to-sales ratio of 2.4x, notably better than most of its peers save COF at 1.28x. What’s interesting is that AXP trades at a much higher price-to-book ratio than COF or DFS. This could be a premium paid for their higher credit quality or a sign they’re relatively expensive. Profitability[Profit] Source: Seeking Alpha AXP increased its Q3 revenue by 24% to $13.6 billion. The company boasts an impressive 31.7% return on equity, notably higher than COF at 15.0%. However, that barely lags DFS at 32.1% and doesn’t hold a candle to MA at 147.7% and V at 40.9%. Based on the company’s latest quarterly results, it expects to be above its original full-year EPS guidance of $9.25 to $9.65. The company generates more cash from its operations than any of its peers, with the exception of V at $18.9 billion. However, V garners a $440 billion market cap while AXP sits at a humbling $117 billion. Growth[Growth] Source: Seeking Alpha While many economists predict a recession in 2023, AXP has yet to slow down growth. Card member spending was up 21% in Q3, driven by continued momentum across goods & services, and travel & entertainment spending. Its revenues for Q3 increased by 24%, and the company has recorded record revenues over the last twelve months. YoY revenue growth of 20.5% lands just shy of MA and V which hit 21.6%. And on a forward basis, it’s expected to get another 17.6% with only MA better at 18%. [What Financial Professionals Are Researching]( Every quarter, we compile data from millions of retail and pro stock investors’ searches across our vast network of financial publishers. We reserve these timely, actionable insights exclusively for our newsletter subscribers. This info can help you decide what to do in your portfolio – so you can protect the money you have and generate bigger gains. [Click here now to download the FREE TrackstarIQ Q3 2022 Report.]( Our Opinion 8/10 AXP has been in business for 172 years. The company has weathered many economic cycles and shouldn’t have a problem with the next downturn. It helps that its customer base has high credit scores, as it hasn’t experienced a slowdown in spending. There’s a reason why it’s one of Warren Buffett’s top holdings. We’re buyers in the $140 - $150 range. News & Insights Just Spilled - [This Steakhouse Has Been Sizzling in 2022]( - [Power Your Portfolio with Alternative Investments]( - [A Non-Garbage Penny Stock]( - [A Different Real Estate Angle]( [We want to hear from you! Let us know your thoughts by clicking here]( [Link]( # [submit to reddit]( [submit to reddit]( [submit to reddit]( [submit to reddit]( To ensure delivery of all emails, [allow us on your list]( Spill&email=TheSpill@news.investingchannel.com). Update your email preferences or unsubscribe [here](. 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