5 Best Consumer Finance Stocks to Buy Now

American Express is one of the biggest consumer lending and financial services company in the U.S. The company accounted for 22.9% of the total credit card transactions in the country, as of 2016. As of the end of 2019, the company had 114.4 million cards in force. In January 2021, American Express stock was upgraded by Deutsche Bank AG. The bank increased its price target for the stock to $131 from $108, with a Buy rating.

Legendary investor Warren Buffett’s Berkshire Hathaway leads the group of hedge funds having stakes in the company as of the end of the third quarter. The Oracle of Omaha owns 151,610,700 shares of American Express, worth $15.2 million. Here is what our writer Tim said about Buffett’s AXP position a few weeks ago:

“Berkshire owned over 151 million AXP shares at the end of September, giving it a nearly 19% ownership position in the company. Buffett emphasized the importance of safeguarding the AXP brand during discussions with CEO Stephen Squeri earlier this year in regards to the coronavirus pandemic, which prompted the company to adjust its member rewards and prioritize its customer service. AXP’s earnings have been cut in half this year, nearly doubling its P/E to 28x, but shares still trade at a solid 3.29x sales, only slightly above their five-year average.”