We recently published Jim Cramer Analyzed These 10 Stocks & Discussed Inflation. American Express Company (NYSE:AXP) is one of the stocks Jim Cramer recently discussed.
American Express Company (NYSE:AXP)’s shares have gained 10% year-to-date as they have benefited from strong earnings performance. The shares have performed well despite dipping after strong earnings reports, which indicates that they would have been much lower had the firm disappointed on the earnings front. In his previous comments about American Express Company (NYSE:AXP), Cramer has praised the firm’s popularity with younger users and its credit quality. He kept the praise this time as well:
“I like American Express if it keeps getting hit. They had a dynamite quarter. And they had by the way big Gen Z, amazing, amazing, the Gen Zrs are really proud. . .I’d buy that stock if it gets hit another three, five points.”
Cramer discussed American Express Company (NYSE:AXP) in detail after the firm’s earnings. Here is what he said:
“Sure enough, when Amex reported last Friday morning, the company delivered a strong quarter, and the stock still tumbled $7 or 2.3% before slipping another 1.6% today. My gut instinct says that this will once again prove to be a good buying opportunity, but my brain says we need to do the homework and make sure the stock’s still worth owning first… Let me tell you the three big things that I liked about the quarter. First, I remain impressed by how American Express is doing on the credit quality front…
When you’re looking at, you’re trying to game the long-term business here, the health, well, with the success of young consumers, I think that’s incredibly important, and this company has figured out because you want to know what’s the long-term, some of these guys are going to max out when the baby boomers are gone.
Still, why is American Express doing so well with younger people in particular? That leads me to the last thing that I really liked about Amex’s report last Friday, which is the way CEO Steve Squeri talked about some of the competitive dynamics of the credit card space. He explained that his company is winning because it offers the best value proposition, even if that’s with a fee-based product…
So here’s the bottom line: Once again, American Express sold off in response to what looked like a good quarter, and just as predicted, my gut instinct says, you know what, this was what we said all the time, we said it would go down. We called it a buying opportunity. We waited till today, and history says that tomorrow’s the day to buy. After looking through the quarter, I’m now confident my gut instinct was right. Buy the dip for American Express tomorrow.”
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Disclosure: None. This article is originally published at Insider Monkey.
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