5 Cheap Value Stocks to Buy According to Warren Buffett

4. American Express Company (NYSE:AXP)

Value of Berkshire Hathaway’s 13F Position: $20.453 billion

Number of Hedge Fund Holders: 68

American Express Company (NYSE:AXP) is a New York-based payment processing company. As of December 21, the company is trading at a PE ratio of 14.6x and the stock price of $147.10 is leaning more toward the lower end of its 52-week range.

Among the hedge funds tracked by Insider Monkey, 68 of them had a stake in American Express Company (NYSE:AXP) in the third quarter, compared to 67 in the previous one. Berkshire Hathaway retained its position as the most prominent shareholder in Q3 with 151.61 million shares, valued at $20.453 billion, representing 6.9% of the fund’s portfolio.

As of December 21, American Express Company (NYSE:AXP) has a dividend yield of 1.41% with a 19.47% payout ratio. Its latest quarterly dividend of $0.52 was declared on December 7, payable by February 10 to the shareholders of record on January 6.

On December 15, Wells Fargo analyst Donald Fandetti reaffirmed an Overweight rating on American Express Company (NYSE:AXP)’s shares and raised the price target to $180 from $170.

Here is what ClearBridge Investments had to say about American Express Company (NYSE:AXP) in its Q2 2021 investor letter:

“In financials, American Express has done an excellent job demonstrating the resiliency of its franchise in the midst of a global pandemic that drove a 60% decline in its core travel and entertainment business. The company’s spend-centric model has been helped by fiscal stimulus ensuring a flush consumer, while management continues to execute well by adding millions of new consumer and small and medium business accounts, which should benefit the franchise over the medium to long term. We remain optimistic regarding the company’s prospects as travel and entertainment activity rebounds, adding to our position in the quarter.”