Jim Cramer Suggests Buying American Express

American Express Company (NYSE:AXP) is one of the stocks on Jim Cramer’s radar. Noting that the company is not growing at the right pace and lacks strong leadership, a caller expressed concern about the stock. In response, Cramer said:

“Oh my god, I think Steve, I’m going to have to, I don’t like to come out against our viewers, but I’m going to have to be a hundred percent against you on this. I think Steve Squeri is a remarkable executive, and I am harsh. I am hard-pressed to criticize a company that hit an all-time high on this very day. So I’m saying [buy, buy, buy].”

Photo by Adam Nowakowski on Unsplash

American Express Company (NYSE:AXP) provides payment and financing solutions through credit and charge cards, banking products, and network services, along with travel, lifestyle, and expense management offerings. Moreover, it delivers merchant processing, fraud prevention, loyalty programs, and airport lounge services. In a July episode, Cramer mentioned the company and remarked:

“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.