One of Warren Buffett’s largest stock assets, which he has held onto for over two decades, has recently witnessed impressive price increases, culminating with a new all-time high (ATH) and promising massive profits for the renowned investor and Berkshire Hathaway (NYSE: BRK.A) CEO.
Specifically, American Express (NYSE: AXP) is among Buffett’s stocks that have recorded positive gains throughout 2023, having advanced by 27.3% over the year and has more recently broken its own price record, hitting $203.88 on January 26, according to the information on January 30.
Indeed, the famous investor bought the credit card behemoth’s shares in 1991 in what has proven to be a wise decision time and time again, posting more than triple the returns of Coca-Cola (NYSE: KO) over the same period and justifying his reputation among stock traders as one of the best in the field.
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American Express stock price analysis
With its newest success, the American Express stock has raced 8.08% across the previous seven days, adding up to the 6.66% gain in the last month, recording a cumulative advance of 16.33% in the past year, and currently changing hands at the price of $200.86.
Notably, this sudden price coincides with the credit card and financial services company posting strong guidance and boosting its dividend despite lower-than-expected quarterly results, expecting full-year earnings per share (EPS) in a range between $12.65 and $13.15 in 2024, exceeding estimates.
As for its prospects for the future, American Express looks promising, with both positive trends in the short and long term, still trading near its 52-week high after reaching the ATH and witnessing a considerably higher volume in the past couple of days, indicative of a strong upward movement.
On top of that, it is doing better than 85% of all other stocks in terms of their yearly performance, albeit being only an average performer in the consumer finance industry, outperforming 64% of the 52 stocks in the same sector, as per data retrieved on January 30.
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