American Express update October 25, 2017

The report for American Express is updated and rated (lower) Buy at $93.86.

American Express lost the Costco branded cards in 2016 because they were not willing to cut the merchant fee down as low as Costco wanted. That caused a drop in earnings but earnings are now increasing.

American Express was first added to this site on February 8, 2014 rated Buy at $87. It’s only up 8% since then. But there was an opportunity to buy it in early 2016 at under $60 and even briefly at under $55. It’s always hard to buy when things are are looking dark but those are the best opportunities. When companies that are unlikely to stay down are on sale that is the time to buy.

At this point American Express looks like a reasonable buy and may do well but does not seem compelling.