10 Best Performing Dow Stocks in 2024

03. American Express Company (NYSE:AXP)

Year to date Share Price Gain: 42.08%

Number of Hedge Fund Holders: 68

American Express Company (NYSE:AXP) is third on our list of the 10 best performing Dow stocks in 2024. The stock has shown an impressive performance this year with a Year-to-Date share price gain of 42.08%. As of Q2 2024, 68 hedge funds have invested in American Express Company (NYSE:AXP), up from 66 in the previous quarter, indicating rising institutional interest in the stock.

In its Q2 2024 earnings report, American Express Company delivered robust financial performance, beating earnings expectations. The company reported earnings per share (EPS) of $4.15, significantly above the consensus estimate of $3.26. American Express Company (NYSE:AXP) achieved revenue growth of 9% year-over-year on an FX-adjusted basis, reaching $16.3 billion. This impressive revenue expansion reflects the strength of its core business, driven by its high-quality, loyal customer base and a strong presence in both domestic and international markets.

American Express Company (NYSE:AXP) profitability continues to be a standout, with net income reaching $3 billion in Q2, reflecting a 44% year-over-year increase. Excluding a one-time gain of $479 million from the sale of its Accertify business, EPS still grew by 21%. The company’s ability to generate strong earnings in a slower growth environment highlights the resilience of its business model and strategic investments.

One of the key growth drivers for American Express is its premium customer base, which consists of high-spending and long-tenured customers with excellent credit profiles. The company has continued to attract new high-quality customers, resulting in steady double-digit growth in card fee revenue for 24 consecutive quarters. Additionally, American Express Company (NYSE:AXP) has demonstrated strong growth in its international segments, with a 13% increase in spending by international consumers and corporate clients.

The company’s focus on disciplined credit management has also paid off, with a reserve build of $101 million mostly driven by loan growth, while maintaining strong credit performance. Despite a modest sequential growth in US SME spending, the firm’s diversified revenue streams and significant investments in marketing and technology have allowed it to maintain its positive momentum.

Overall, American Express Company (NYSE:AXP) strong financial performance, increasing hedge fund interest, and ability to consistently generate superior returns make it a compelling investment among the best-performing Dow stocks of 2024.