Over the past three months, American Express Co (AXP, Financial) has experienced a remarkable surge in its stock price, with a 31.46% gain, reflecting a strong performance in the credit services industry. As of the latest market data, the company boasts a market capitalization of $145.17 billion, with its current stock price standing at $199.21. This recent uptick includes a 4.61% gain over the past week alone. When compared to the GF Value of $218.71, American Express is currently considered fairly valued, a shift from its previous status three months ago as modestly undervalued when the GF Value was at $207.18.
Introduction to American Express Co
American Express Co, a stalwart in the credit services industry, operates a global financial network across approximately 130 countries. The company is renowned for its charge and credit card payment products and a highly profitable merchant payment network. Since 2018, American Express has diversified its offerings into three main segments: global consumer services, global commercial services, and global merchant and network services. Beyond payment solutions, it provides a suite of business services, including expense management tools, consulting, and loans, catering to a broad spectrum of commercial needs. 
Assessing American Express's Profitability
With a Profitability Rank of 6/10, American Express demonstrates a solid ability to generate profits relative to its peers. The company's Return on Equity (ROE) is an impressive 31.14%, outperforming 94.4% of its industry counterparts. Additionally, its Return on Assets (ROA) stands at 3.41%, surpassing 66.85% of industry peers. A consistent track record of profitability over the past decade further solidifies its standing, with American Express outperforming 99.81% of its competitors in this regard. 
Growth Trajectory of American Express
The company's Growth Rank stands at an impressive 9/10, indicating robust growth in revenue and profitability. The 3-Year Revenue Growth Rate per Share is at 10.00%, better than 63.6% of industry peers, while the 5-Year Revenue Growth Rate per Share is at 8.60%, surpassing 62.15% of competitors. Looking ahead, the Total Revenue Growth Rate (Future 3Y To 5Y Est) is projected at 10.79%, which is more favorable than 61.9% of industry peers. Earnings growth also appears promising, with a 3-Year EPS without NRI Growth Rate of 7.20% and a 5-Year EPS without NRI Growth Rate of 18.60%, outperforming 51.13% and 72.03% of industry peers, respectively. The EPS Growth Rate (Future 3Y To 5Y Est) is estimated at 12.95%, better than 54.55% of competitors. 
Influential Shareholders in American Express
Notable investors have taken significant positions in American Express, with Warren Buffett (Trades, Portfolio) leading the pack, holding 151,610,700 shares, which translates to a 20.8% share percentage. Ken Fisher (Trades, Portfolio) follows with 10,433,866 shares, accounting for 1.43% of the company's shares. First Eagle Investment (Trades, Portfolio) holds a smaller yet impactful position with 2,603,959 shares, representing 0.36% of the company's shares. These major holders contribute to the stock's stability and reflect investor confidence in the company's financial health and growth prospects.
Competitive Landscape
When compared to its competitors, American Express holds a commanding market position. PayPal Holdings Inc (PYPL, Financial) has a market cap of $65.34 billion, Capital One Financial Corp (COF, Financial) is valued at $52.88 billion, and Discover Financial Services (DFS, Financial) stands at $26.57 billion. American Express's larger market cap suggests a stronger market presence and potentially greater resources to leverage for continued growth and innovation within the credit services sector.
Conclusion
In summary, American Express Co's stock performance has been robust, with significant gains over the past quarter. The company's fair valuation, according to the GF Value, indicates that the stock price is reflective of its intrinsic value. American Express's strong market position is supported by its consistent profitability and promising growth prospects. The presence of influential shareholders like Warren Buffett (Trades, Portfolio) adds to the stock's appeal, signaling stability and confidence in its future trajectory. When juxtaposed with its key competitors, American Express's market cap dominance underscores its competitive edge in the credit services industry, positioning it well for continued success.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
