Jim Cramer Suggests Waiting for Post Earnings Dip Before Buying American Express

American Express Company (NYSE:AXP) was one of the stocks on Jim Cramer’s recent Mad Money game plan. Ahead of the upcoming earnings report, Cramer mentioned the company and said:

American Express reports, too. And I want to tell you that this one almost always seems to retreat when we see the numbers and then runs a couple of days later. So what do you do? Okay, you wait till the end of the day or maybe the next morning to buy American Express, and that way you’ll avoid what I consider to be just this endless knee-jerk selling on their numbers that are usually actually pretty good anyway.

A stock market graph. Photo by energepic.com

American Express Company (NYSE:AXP) provides credit and charge cards, payment processing, banking, and travel-related services. The company also offers merchant solutions and expense management tools. On April 8, Cramer discussed that “ exposure to an affluent consumer” can be gained by investing in the stock, as he said:

American Express, its customer base skews wealthier, and demand for premium products can stay strong even if the rest of the economy slows down. You know exactly what you’re going to get with American Express, although it does have again a much higher PE multiple…  If you want more exposure to an affluent consumer, you go with American Express.

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