4-Star Blue Chips Poised to Outperform: American Express

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Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, credit card giant American Express (NYS: AXP) has earned a respected four-star ranking.

With that in mind, let's take a closer look at American Express and see what CAPS investors are saying about the stock right now.

American Expressfacts

Headquarters (founded)

New York (1850)

Market Cap

$64.0 billion

Industry

Consumer finance

Trailing-12-Month Revenue

$29.4 billion

Management

Chairman/CEO Kenneth Chenault
CFO Daniel Henry

Return on Equity (average, past 3 years)

26.5%

Cash / Debt

$25.0 billion / $60.0 billion

Dividend Yield

1.4%

Competitors

Discover Financial
Mastercard
Visa 


Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 90% of the 3,001 members who have rated American Express believe the stock will outperform the S&P 500 going forward.

Just last week, one of those Fools, All-Star Chemdawg, succinctly summed up the American Express bull case for our community:

[Among the lowest P/E] of any card out there and the highest [dividend yield] ... and who uses paper when they have access to plastic? Swipe fees may have been lowered, but in reality this is still one of the most profitable business models around ... without the downside of dealing with the customer accounts.

If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a strong four-star rating, American Express may not be your top choice.

If that's the case, we've compiled a special free report for investors called "Secure Your Future With 9 Rock-Solid Dividend Stocks," which uncovers several other juicy income opportunities. The report is 100% free, but it won't be around forever, so click here to access it now.

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The article 4-Star Blue Chips Poised to Outperform: American Express originally appeared on Fool.com.

Fool contributor Brian Pacampara has no positions in the stocks mentioned above. The Motley Fool owns shares of MasterCard. Motley Fool newsletter services recommend American Express Company and Visa. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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