10 Best Stocks to Buy Before Spring

8. American Express Company (NYSE:AXP)

Number of Hedge Fund Holders: 71

American Express Company (NYSE:AXP) is a leading bank holding company that provides a comprehensive digital payment network, including credit cards, charge cards, and financing options. The company’s premium brand is one of the primary reasons for its industry leadership.

In the fourth quarter of 2024, American Express Company (NYSE:AXP) recorded more than $17 billion in revenue, up 9% from the same period the previous year. Net income topped $2.1 billion, representing a 12% increase year-over-year. The bank also reached new milestones for annual Card Member spending, net card fee revenues, and new card acquisitions, issuing 13 million new cards this year.

On January 27, RBC Capital Markets reaffirmed its Outperform rating on American Express Company (NYSE:AXP) and raised its price target from $330 to $350. The change follows the company’s recent fourth-quarter results report, which RBC Capital examined and highlighted many critical performance metrics. American Express’s projection for 2025 was likewise optimistic, with RBC Capital citing a constant rate of revenue growth.

Bretton Fund stated the following regarding American Express Company (NYSE:AXP) in its Q4 2024 investor letter:

“American Express Company (NYSE:AXP) was our best performing stock last year, returning 60%, which was on top of 2023’s 29%. Its premium credit cards are more popular than ever, and its moderately affluent customer base continues to spend. American Express did especially well signing up younger cardholders, a great sign that its growth can be sustained for years to come. The combination of healthy revenue growth and tight expense control led to an earnings-per-share growth of 25%.”