7. American Express (AXP) is a credit-card company, serving consumers and businesses.
The company's fourth-quarter adjusted earnings increased 59% year-over-year to 94 cents, but narrowly missed analysts' consensus expectation by 2.6%, sending the stock down more than 2%. AmEx had beaten expectations in the seven previous quarters. Still, its growth rates are impressive and the stock is notably cheap, trading at a forward earnings multiple of 11. The U.S. card services segment boosted profit 70% in the latest quarter, outpacing the international unit's 48% net income expansion.
12-Month Sales Growth: 14%
12-Month Profit Growth: 90%
12-Month Stock Performance: 12%
3-Year Annualized Sales Growth: -1.5%
3-Year Annualized Profit Growth: 0.4%
3-Year Annualized Stock Performance: -4.2%
3-Year Annualized Dividend Growth: 4.6%
5-Year Annualized Dividend Growth: 8.5%
Bullish Scenario: Piper Jaffray rates AmEx "overweight", expecting a rise of 41% to $62. Bearish Scenario: Credit Suisse ranks AmEx "underperform", predicting a drop of 9% to $40.
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