Is American Express a Buy?
Companies have been impacted by the coronavirus pandemic in different ways, some for better and some for worse. The financial industry in general has been hit by lower interest rates, but those with a strong credit card arm have been further harmed by reduced consumer spending and high provisions for losses.
American Express (NYSE: AXP) has not been spared from the trauma, but it's also in a unique situation considering its differentiated business model and clientele. Let's take a look at how it's been doing recently and if it's a buy today.
At the end of the first quarter, when pandemic effects were at their worst and the only thing a business could rely on was uncertainty, American Express introduced four priorities for the year: supporting its workforce, protecting its customers and brand, keeping the focus on growth, and staying financially healthy. The company announced second-quarter earnings on Friday; CEO Stephen Squeri talked about how American Express executed on on these goals.
Source Fool.com
