American Express Achieves 467% Return Over Decade
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4 days ago
0mins
Source: Fool
- Decade Return: As of May 20, American Express shares have generated a total return of 467% over the past decade, transforming an initial investment of $10,000 into $56,700, demonstrating its strong compounding ability, even though the stock is currently 20% off its peak from last December.
- Strong Financial Performance: Between Q1 2016 and Q1 2026, the company's revenue grew at an annualized rate of 8.9%, while diluted earnings per share increased at an impressive annual rate of 11.4%, providing robust support for stock price appreciation and reflecting its superior position in the financial services sector.
- Attraction of Younger Consumers: American Express has successfully attracted younger consumers, with CEO Stephen Squeri noting that millennials capture a high share of their wallet early on, which translates into increased spending over time, thereby driving future revenue growth for the company.
- Reasonable Valuation: Despite ongoing macro risks related to credit quality and competitive threats, American Express's current P/E ratio of 19.3 is 20% cheaper than at the start of 2026, presenting a reasonable entry point for investors and highlighting its value as a high-quality business.
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Analyst Views on AXP
Wall Street analysts forecast AXP stock price to rise
21 Analyst Rating
8 Buy
12 Hold
1 Sell
Moderate Buy
Current: 315.120
Low
280.00
Averages
379.06
High
425.00
Current: 315.120
Low
280.00
Averages
379.06
High
425.00
About AXP
American Express Company is a global payments and premium lifestyle brand powered by technology. Its card-issuing, merchant-acquiring and card network businesses offer products and services to a broad range of customers, including consumers, small businesses, mid-sized companies and large corporations around the world. Its range of products and services includes credit and charge cards and complementary products and services, including travel, dining, lifestyle and expense management products and services; banking and other payment and financing products and services, including deposits and non-card lending; merchant acquisition and processing, servicing and settlement, fraud prevention, and point-of-sale marketing and information products and services, and network services. These products and services are offered through various channels, including mobile and online applications, affiliate marketing, customer referral programs, third-party service providers, and business partners.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Apple's Market Leadership: With a market value exceeding $700 billion, Apple remains a significant holding for Berkshire, as its products and services continue to thrive, particularly in the services ecosystem, ensuring future growth potential.
- Coca-Cola's High-Profit Model: Coca-Cola operates with net profit margins in the mid-20% range and has consistently increased its dividends, earning the title of 'Dividend King', with a business model that relies on selling foundational syrups, ensuring stable cash flow and long-term investor returns.
See More
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- Recommended Asset: The investment Buffett frequently endorses is the S&P 500 index fund, which he believes offers non-professional investors exposure to a wide array of quality companies, with its low-cost nature making it particularly appealing.
- Long-Term Returns: Since its inception in the late 1950s, the S&P 500 has posted an average annual return of 10%, indicating that by investing in this ETF, investors can avoid the stress of stock selection and are likely to see wealth growth over the long term.
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- Financial Tool Innovation: The new card offers flexible credit limits and reward mechanisms to help designers navigate complex project timelines and client payment cycles, thus improving operational efficiency and promoting sustainable growth.
- Industry Support: ASID President Khoi Vo emphasized that this partnership reflects ASID's commitment to strengthening the business side of design, highlighting the importance of providing designers with the right resources to focus on creating spaces that enhance people's lives.
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- ETF Unit Trading Mechanism: Exchange-traded funds (ETFs) trade similarly to stocks, where investors are buying and selling 'units' that can be created or destroyed based on investor demand, impacting liquidity and market performance.
- Inflows and Outflows Monitoring: Weekly monitoring of changes in shares outstanding helps identify ETFs experiencing notable inflows (new units created) or outflows (old units destroyed), allowing for assessment of their impact on underlying assets and market dynamics.
See More
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- Visa's Strong Financial Performance: Despite economic uncertainties, Visa achieved a 9% increase in payment volume in its latest quarter, with valuations at 30 times free cash flow and 29 times earnings, showcasing the resilience of its business model and providing a compelling buying opportunity for investors despite stock price declines.
- Procter & Gamble's Rising Dividend Yield: Procter & Gamble raised its dividend for the 70th consecutive year in April, with a current yield of 3%, and despite challenges in volume growth, its strong brand portfolio positions it as an ideal choice for risk-averse investors, trading at a P/E of just 21, below its 10-year average of 25.4.
See More
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- Market Share Expansion: Nvidia has broadened its market share in data centers by delivering new rack-scale solutions, including multi-chip systems to Anthropic, OpenAI, Oracle, and SpaceX on May 18, indicating strong growth potential amid surging AI demand.
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