Shares of American Express ( AXP) closed at $52.87 Thursday, returning 13% year-to-date.
The company reported a very strong 2011 ROE of 27.7%. The shares trade for 12 times the consensus 2012 EPS estimate of $4.23. Sakhrani rates American Express "Outperform," with a price target of $66, saying on Thursday that the company's credit card "charge-off and delinquency rates moved contrary to typical seasonal trends in January as both typically increase about 15 bps on average during the month." American Express's January 30+ days delinquency rate for January on managed credit card portfolios was an industry-leading 1.57%, inching up slightly from 1.53% in December, but improving from 2.16% in January 2011. Interested in more on American Express? See TheStreet Ratings' report card for this stock. >>To see these stocks in action, visit the 3 Solid Credit Card Stocks With Upside portfolio on Stockpickr. -- Written by Philip van Doorn in Jupiter, Fla. To contact the writer, click here: Philip van Doorn. To follow the writer on Twitter, go to http://twitter.com/PhilipvanDoorn.