10 Best American Bank Stocks To Buy Now

7. American Express Company (NYSE:AXP)

Number of Hedge Fund Holders: 62

American Express Company (NYSE:AXP) is a bank-holding and financial services company that specializes in payment cards. The stock had impressive returns in 2024, with its share price appreciating 60% during the year.

On January 24, the company announced financial results for the fourth quarter and full-year 2024. It delivered record revenues of $66 billion for the year, up 10% year-over-year, and a record net income of $10.1 billion, translating to an EPS of $14.01, growing 25% from last year.

American Express Company (NYSE:AXP) also saw a record 13 million new card acquisitions in 2024. Moreover, it continued to add millions of new merchant locations to its global network. The company exited the year with strong momentum during the fourth quarter, with an 8% growth in billings, spurred by robust holiday spend.

The pickup in spending on AmEx cards was driven by millennials and Gen Z users, who spent more on entertainment and travel during the holiday season. Their transaction volumes jumped 16% during the quarter, up from 12% in the third quarter. Elevated spending trends have continued in January 2025. Analysts believe accelerated billings growth will be critical in American Express Company (NYSE:AXP)’s quest to achieve revenue growth of between 8% and 10% in fiscal 2025.

According to Insider Monkey’s database for Q3 2024, 62 hedge funds held a stake in the company, making American Express Company (NYSE:AXP) one of the best American bank stocks to buy now.