In this article, we discuss 5 best fintech stocks to buy in 2024. If you want to read our detailed discussion on the fintech industry, head over to 10 Best Fintech Stocks To Buy in 2024.
5. American Express Company (NYSE:AXP)
Number of Hedge Fund Holders: 74
American Express Company (NYSE:AXP) is a global provider of charge and credit payment card products and travel-related services. Operating through three segments – Global Consumer Services Group, Global Commercial Services, and Global Merchant and Network Services – the company offers payment and financing products, network services, accounts payable expense management, and travel and lifestyle services. It is one of the best fintech stocks to watch.
On January 26, American Express Company (NYSE:AXP) released stronger-than-expected guidance for 2024. Despite missing the average analyst estimates for earnings per share and revenue in the last quarter of 2023, the company plans to increase its quarterly dividend by 17% to $0.70, starting with the Q1 dividend declaration. For 2024, American Express Company (NYSE:AXP) anticipates EPS in the range of $12.65 to $13.15, surpassing the consensus estimate of $12.30, with a revenue growth forecast of 9% to 11%. This guidance suggests 2024 revenue between $66.0 billion and $67.2 billion, compared to the consensus of $66.2 billion.
According to Insider Monkey’s third quarter database, 74 hedge funds were long American Express Company (NYSE:AXP), compared to 73 funds in the prior quarter. Warren Buffett’s Berkshire Hathaway is the largest stakeholder of the company, with 151.6 million shares worth $22.6 billion.
In its fourth quarter 2023 investor letter, Oakmark Select Fund stated the following regarding American Express Company (NYSE:AXP):
“American Express Company (NYSE:AXP) is one of the largest credit card issuers and payment networks in the world. We believe the company’s closed-loop network, brand equity and scale represent durable competitive advantages. Unlike most card issuers that process credit card transactions over third-party networks, American Express processes transactions over its own network. This allows American Express to earn greater economics than peers on each card transaction. The company retains part of this advantage in the form of higher profitability and reinvests the rest in enhanced customer rewards and service. Over time, these investments have helped American Express build its brand and attract more lucrative, high-spending card customers. We expect this business model and customer-centric approach will continue to drive industry-leading growth for years to come. Concerns over the near-term economic outlook allowed us to purchase shares of American Express at a 13x P/E on next year’s consensus earnings estimate. We think that is an attractive valuation for a company with this combination of business quality and growth.”
