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9 Consumer Finance Stock Plays From eBay to Capital One

4. American Express
Shares of American Express closed at $56.57 Thursday returning 21% year-to-date, following a 12% return during 2011.

The shares trade for 12 times the consensus 2013 EPS estimate of $4.73.

Based on a quarterly payout of 20 cents, the shares have a dividend yield of 1.41%.

Sakhrani's price target for American Express is $68, which would represent upside of 20%.

The consensus among analysts is for American Express to report third-quarter earnings $1.08 a share, declining from $1.15 the previous quarter, but increasing from $1.03 a year earlier.

Sakhrani expects American Express to report third-quarter earnings of $1.12 a share, and estimates that full-year EPS for 2012 will be $4.46, followed by EPS of $4.89 in 2013.

The analyst said that "the company has provider quarter-to-date through July worldwide billed business growth of 6% year/year on a FX-adjusted (constant currency) basis, which compares to 7% year/year reported (versus 9% FX-adjusted) in 2Q12 and our estimate of 5% on a reported basis in 3Q12," and that "given the lack of updated volume trends, we believe investors will focus on the trajectory of billed business growth throughout 3Q12, domestically and internationally."

AXP Chart AXP data by YCharts

Interested in more on American Express? See TheStreet Ratings' report card for this stock.

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