5 Stocks That Benefit From Interest Rate Hikes

In this article, we discuss the 5 stocks that benefit from interest rate hikes. If you want to read about some more rate hike stocks, go directly to 10 Stocks That Benefit From Interest Rate Hikes.

5. American Express Company (NYSE:AXP)

Number of Hedge Fund Holders: 67   

American Express Company (NYSE:AXP) provides charge and credit payment card products, and travel-related services. In early August, the company announced that it would be launching American Express Global Pay. The new digital solution aims to enable businesses based in the United States to securely make domestic and international business-to-business payments. The firm will provide businesses with the ability to make payments through a mobile-platform in the solution that will reach more than 40 countries and be available across a range of currencies. 

On July 26, Citi analyst Arren Cyganovich kept a Neutral rating on American Express Company (NYSE:AXP) and raised the price target to $159 from $148, noting that higher operating and marketing expenses mitigate some of the earnings potential of the firm. 

Among the hedge funds being tracked by Insider Monkey, Omaha-based investment firm Berkshire Hathaway is a leading shareholder in American Express Company (NYSE:AXP), with 151.6 million shares worth more than $2.1 billion. 

In its Q2 2022 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and American Express Company (NYSE:AXP) was one of them. Here is what the fund said:

“In financials, American Express Company (NYSE:AXP) 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.”