Jim Cramer’s Bold Predictions About These 10 Financial Stocks

6. American Express Company (NYSE:AXP)

Number of Hedge Fund Holders In Q3 2024: 62

Date of Cramer’s Comments: 10-07-24/10-08-24

Performance Since Then: 9.96%

American Express Company (NYSE:AXP) is a financial products and services company known primarily for its payment cards. These cards are also the firm’s bread and butter since its largest revenue line item is the money earned through card discounts that its customers can avail. During the first nine months of the year, American Express Company (NYSE:AXP) earned $26 billion through discount revenue which accounted for 53% of its overall revenue. Therefore, the firm is heavily reliant on consumer spending and merchant health for its financial stability and stock performance. Since Cramer’s remarks, American Express Company (NYSE:AXP)’s shares soared by 7% after the US election and dipped by 4.5% on the day of the Fed’s rate cut announcement. Here’s what Cramer said about the stock in October:

“.. JP Morgan downgrades the stock from buy to hold. America’s best, they say, ‘represents the asymmetric risk associated with a stock trading near the high end of its valuation range with limited upside to estimates.’ So they say, go elsewhere.

“Do you know how many times Amex has been downgraded and gotten right off the canvas a few days later? Do you know how many times it’s bounced back almost immediately? This is the premium global credit card company in the world, and you’re downgrading ahead of a rate-cutting cycle. How about some history, for heaven’s sake?

“I say if you sell it at $276, I hope you can get back in, I don’t know, at $264. If it reports a so so quarter, maybe you can do that. You might leave it, but you may never get back in. And therefore you might miss a much bigger bevy of points, which is what I’m worried about.”