Renowned financial analyst Jim Cramer has publicly praised American Express (AXP) as a 'great company,' reinforcing investor confidence in the credit card giant. The endorsement comes amid heightened interest in financial services stocks following recent market fluctuations.
- Jim Cramer labeled American Express (AXP) a 'great company' in a recent financial commentary.
- AXP reported $22.3 billion in revenue and $7.2 billion in net income for fiscal year 2025.
- Revenue grew 7.8% year-over-year; net income rose 9.4% compared to 2024.
- AXP shares rose 2.1% in after-hours trading following the commentary.
- The stock trades at a forward P/E of 17.6, below the financial services sector average.
- The endorsement is expected to influence short-term investor sentiment in the sector.
Jim Cramer, a prominent voice in retail investing circles, has labeled American Express (AXP) a 'great company' during a recent appearance on a financial news program. His remarks underscore growing optimism about the firm’s long-term resilience and strategic positioning within the consumer finance sector. Cramer emphasized AXP’s strong brand, consistent revenue growth, and expanding global footprint as key differentiators in a competitive landscape. The comment comes at a pivotal moment for financial services stocks, which have faced pressure due to macroeconomic uncertainty and rising interest rate expectations. American Express reported $22.3 billion in total revenue for fiscal year 2025, reflecting a 7.8% year-over-year increase, while net income reached $7.2 billion, up 9.4% from the prior year. These figures highlight the company’s ability to maintain profitability even during periods of elevated credit risk and inflationary pressures. Market participants have responded positively to Cramer’s remarks, with AXP shares rising 2.1% in after-hours trading following the broadcast. Analysts note that the stock currently trades at a forward price-to-earnings ratio of 17.6, below the sector average, suggesting potential undervaluation. The endorsement is expected to bolster short-term investor sentiment, particularly among retail traders who closely follow Cramer’s recommendations. The broader financial services sector, including peers like Visa (V) and Mastercard (MA), has also seen modest gains, indicating a sector-wide reassessment of risk and growth potential. However, investors are cautioned to evaluate the company’s fundamentals beyond commentary, as Cramer’s statement does not include new financial disclosures or strategic updates.