Is the Market Underrating American Express's Growth Runway?
One of Warren Buffettʻs favorite stocks is down 6% year to date.
Overview
American Express (NYSE: AXP) stock has sputtered this year compared with its benchmarks, sector, and major competitors. The stock is down about 6% year to date, while Visa is up 6%, and Mastercard is flat. The Dow Jones Industrial Average and S&P 500 -- two indexes that include American Express -- are each up 13% so far this year. And the financial services sector within the S&P 500 has averaged a 5% return.
But based on several factors, investors and analysts may be underrating the financial services giant. Just 48% of Wall Street analysts rate it a buy, compared with 93% each for Mastercard and Visa. Here's why you should consider this underrated and overlooked payments stock.
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Originally published at www.fool.com.
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