Was Arrowstreet Capital Right About These 5 Finance Stocks?

In this article, we discuss 5 finance stocks to buy according to Arrowstreet Capital as of the end of the third quarter of 2021 and assess their performance over the past 12 months. If you want our detailed analysis of these stocks, go directly to Was Arrowstreet Capital Right About These 10 Finance Stocks?

5. American Express Company (NYSE:AXP)

Arrowstreet Capital’s Stake Value: $425,132,000

Stock performance over the past 12 months through November 25: -1.70%

American Express Company (NYSE:AXP) is a multinational credit card service corporation that declared on December 8 a $0.43 per share quarterly dividend, in line with previous, offering a forward yield of 1.02%. The dividend will be paid on February 10 to shareholders of record on January 7. 

Barclays analyst Mark DeVries raised the price target on American Express Company (NYSE:AXP) to $182 from $171 and kept an Equal Weight rating on the shares on January 10.

Here is what ClearBridge Investments has 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.”