American Express Stock Zoomed 58.4% Higher Last Year. Here's Why.

Shares of American Express (NYSE: AXP) stock shot up 58.4% in 2024, according to data from S&P Global Market Intelligence. The credit card and banking giant had close to everything working in its favor last year, as the company posted strong earnings growth and saw its price-to-earnings ratio (P/E) expand. The Warren Buffett favorite now has a market cap of over $200 billion, making it one of the largest financial institutions in the world.Here is why American Express stock marched higher in 2024.Earnings per share (EPS) hit $13.59 over the past 12 months, up from $11.21 in 2023. Total spending across its credit card network is growing 6% year over year, while net card fees and net interest income are growing in the double digits. Net write-offs on its loans declined in the last few quarters and are still below pre-pandemic levels. Add in some steady share repurchases, and you can see why American Express's EPS grew so much in 2024.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool