Jim Cramer of CNBC has endorsed American Express stock, emphasizing its long-term growth strategy over short-term earnings per share boosts. He highlighted that the stock has dipped over 13% from its recent highs, presenting a buying opportunity in a well-managed company.
Despite a 4% drop after earnings—where the company met expectations and maintained its guidance—Cramer noted a 3% rebound. He believes the focus on reinvesting profits into cardholder benefits, rather than immediate profit boosts, is a wise move for long-term shareholder value. CEO Steve Squeri mentioned ongoing investment in growth initiatives, which Cramer trusts due to Squeri’s solid track record.
American Express’s recent investments, such as updates to the Platinum card, have reportedly yielded high returns on equity, marking them among the best in the financial sector. Cramer remains optimistic about the company’s direction and considers it a strong buy recommendation.
