American Express Company, together with its subsidiaries, operates as integrated payments company in the United States, Europe, the Middle East and Africa, the Asia Pacific, Australia, New Zealand, Latin America, Canada, the Caribbean, and Internationally. It operates through four segments: U.S. Consumer Services, Commercial Services, International Card Services, and Global Merchant and Network Services. The company's products and services include credit card, charge card, banking, and other payment and financing products; network services; expense management products and services; and travel and lifestyle services. It also provides merchant acquisition and processing, servicing and settlement, point-of-sale marketing, and information products and services for merchants; and fraud prevention services, as well as the design and operation of customer loyalty programs. In addition, the company operates lounges at airports under Centurion Lounge brand name. It sells its products and services to consumers, small businesses, mid-sized companies, and large corporations through mobile and online applications, affiliate marketing, customer referral programs, third-party service providers and business partners, direct mail, telephone, in-house sales teams, and direct response advertising. American Express Company was founded in 1850 and is headquartered in New York, New York.

American Express appears to be a high-quality but no longer cheap financial business: the company’s profitability and returns are noticeably above the industry, but the market valuation already reflects much of that. P/E of 19.68, P/S of 2.65, P/FCF of 16.25, and especially P/B of 6.75 are above the sector median, which limits the potential for further re-rating. At the same time, the dynamics of the multiples do not provide a strong signal of acceleration: P/E and P/S generally fluctuate within a narrow range, while P/B remains consistently high, meaning the market is paying a premium for quality rather than for an improving trend. AXP’s strength lies in its very high ROE of 33.72%, ROA of 3.69%, and return on tangible equity of 33.55%, and these figures have been stable over the years and do not appear to be one-off. Gross profit margin of 90.34% and gross profit growth support the case for a strong product economics, but net profit margin of 13.45% and operating margin of 17.56% are below the industry median, so operating efficiency does not look unequivocally best in the sector. Revenue, net income, and operating income are generally growing, which is positive for the valuation, but the pace no longer looks explosive and rather confirms a mature, resilient business profile. The company’s balance sheet is acceptable: a current ratio of 1.57 and significant cash on hand support liquidity, however a quick ratio of 0.00 and debt/equity of 1.73, along with long-term debt of $57.0 billion, indicate a notable debt burden. Equity and assets are growing, which mitigates the risks, but total liabilities remain very high, so leverage cannot be ignored. The dividend yield of 0.27% is more symbolic for investors and is not a strong argument for a re-rating. Overall, the fundamentals point to durable quality and strong returns on capital, but at the current multiples the upside is limited, and the premium to the industry already looks high. Therefore, a moderate conservative downward adjustment is appropriate rather than an aggressive upward revision of the forecast.

American Express Company

Средний индекс, значительно упал. Оптимистичный взгляд на свои позиции резко сменился на неуверенность.

Medium index, significantly down. An optimistic view of his position suddenly changed to uncertainty.

Слабый индекс, значительно упал. Медведи сохранили, но ослабили уверенность в своих позициях.

Weak index, significantly down. The bears retained but weakened their confidence in their positions.

Средний индекс, незначительно вырос. Рынок не поддерживает быков.

Medium index, slightly up. The market does not support the bulls.

Средний индекс, значительно упал. Рынок на стороне медведей.

Medium index, significantly down. The market is on the bears' side.

Средний индекс, без изменений. Отток средств из лонгов на высоком уровне.

Medium index, flat. Outflow of funds from longs at a high level.

Средний индекс, без изменений. Приток средств в шорты остается положительным.

Medium index, flat. The inflow of funds into shorts remains positive.

AXP demonstrates strong profitability and earnings growth, but trades at a high premium to the sector and carries a significant debt burden, which limits upside.

American Express (AXP) ended the recent trading session at $324.69, demonstrating a +1.24% change from the preceding day's closing price. The stock exceeded the S&P 500, which registered a gain of 0.86% for the day. Meanwhile, the Dow gained 0.98%, and the Nasdaq, a tech-heavy index, added 0.96%.
Shares of the credit card issuer and global payments company witnessed a loss of 6.68% over the previous month, trailing the performance of the Finance sector with its loss of 1.79%, and the S&P 500's loss of 1.96%.
The upcoming earnings release of American Express will be of great interest to investors. The company's earnings report is expected on October 23, 2026. On that day, American Express is projected to report earnings of $4.58 per share, which would represent year-over-year growth of 10.63%. Meanwhile, the latest consensus estimate predicts the revenue to be $20.09 billion, indicating a 9.05% increase compared to the same quarter of the previous year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $17.68 per share and revenue of $79.46 billion, indicating changes of +14.95% and +10.02%, respectively, compared to the previous year.
Any recent changes to analyst estimates for American Express should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.1% higher. American Express is currently a Zacks Rank #3 (Hold).
From a valuation perspective, American Express is currently exchanging hands at a Forward P/E ratio of 18.14. For comparison, its industry has an average Forward P/E of 11.71, which means American Express is trading at a premium to the group.
Investors should also note that AXP has a PEG ratio of 1.36 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Financial - Miscellaneous Services was holding an average PEG ratio of 1.1 at yesterday's closing price.
The Financial - Miscellaneous Services industry is part of the Finance sector. This group has a Zacks Industry Rank of 103, putting it in the top 42% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.9% per year. So be sure to give these hand picked 7 your immediate attention.
See them now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
This article originally published on Zacks Investment Research (zacks.com).

American Express (AXP) Laps the Stock Market: Here's Why

(0:30) - Breaking Down The Berkshire Hathaway Portfolio
(4;00) - Should You Consider Investing Into Any of The Berkshire Hathway's Positions?
(21:15) - Episode Roundup: CVX, NUE, AXP
Podcast@Zacks.com
Welcome to Episode #453 of the Value Investor Podcast.
Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio, shares some of her top value investing tips and stock picks.
One of the big topics of conversation on the podcast over the last ten years has been Berkshire Hathaway’s equity portfolio. Tracey has talked about what has been bought, and sold, each quarter.
But Warren Buffett, the world’s greatest value investor, retired as CEO in Dec 2025. Additionally, one of Buffett’s two lieutenants, Todd Combs, left Berkshire in Dec 2025 as well.
As a result, there’s been a lot of changes to the equity portfolio. It once had over 50 companies but it’s now down to just 27.
Are There Values in Berkshire Hathaway’s Portfolio?
But not all of those companies are “values” right now. Berkshire Hathaway started buying Apple in 2016 when it’s price-to-earnings (P/E) ratio was under 10. A P/E ratio under 10 usually indicates deep value.
But today, Apple’s P/E is at 35 which is considered a high P/E. A value investor would be hard pressed to buy Apple at these current valuations.
Value investors need to look beyond the technology companies in the portfolio. Think old school, including those companies with hard assets.
The Top 3 Value Stocks to Buy in the Berkshire Hathaway Portfolio
1. Chevron Corp. (CVX)
Chevron is a global integrated energy company which was founded in 1879. It’s been around a long time. Thanks to rising oil prices and record high crack spreads, earnings are expected to jump 127% this year.
Shares of Chevron are hitting new all-time highs, up 40% year-to-date. But it’s still cheap. Chevron trades with a forward P/E of just 12.6. A P/E under 15 usually indicates value.
Chevron is also shareholder friendly. It has increased its dividend 39 years in a row. That dividend currently yields an attractive 3.4%.
Berkshire Hathaway started buying Chevron shares in 2020, during the COVID pandemic. It has bought, and sold, several times over the last six years but it has maintained a large position in the company.
Should an energy company like Chevron be on your value stock short list?
2. Nucor Corp. (NUE)
Nucor Corp. is a leading North American producer of structural steel, steel bars, steel joists, steel deck and cold finished bars. It can trace its lineage back to 1905 but became Nucor in 1972.
In the second quarter of 2026, Nucor saw a second consecutive quarterly record for steel mill shipments. It cited supportive federal trade policies.
Earnings are expected to jump 132% in 2026. Steel is in demand again due to the AI Revolution infrastructure buildout.
Shares of Nucor are up 56.6% year-to-date but have cooled off 7% over the last month. It’s still cheap. Nucor trades with a forward P/E of just 14.5. A P/E ratio under 15 usually indicates value.
Nucor is shareholder friendly. It pays a dividend, currently yielding 0.9%, and also has a share repurchase program.
Berkshire Hathaway first bought shares of Nucor in the first quarter of 2025. It’s a small position in the equity portfolio, however.
Should a steel producer like Nucor be on your value stock short list?
3. American Express Co. (AXP)
American Express is a global payments and premium lifestyle brand company which was founded in 1850. Buffett has always liked the companies which built moats over many decades in business.
Shares of American Express are down 13.3% year-to-date after hitting new all-time highs at the end of 2025. This sell-off has created a buying opportunity for value investors.
The shares are down but earnings are expected to grow 14.9% in 2026 and 14.5% in 2027. American Express has a forward P/E of 18.2. While that’s not under 15 which would make it a classic value, it is cheap for the industry.
American Express is shareholder friendly. It has raised its dividend 5 consecutive years, including in March 2026 when it raised the quarterly dividend by 16%. It’s now yielding 1.2%.
Berkshire Hathaway first bought American Express in 1991 and accumulated shares until 1995. It’s now the second largest position in the equity portfolio, with only Apple ranking above it.
Should a global payments company like American Express be on your value stock short list?
What Else Should You Know About Finding the Best Stocks in Berkshire Hathaway’s Portfolio?
Tune into this week’s podcast to find out.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.9% per year. So be sure to give these hand picked 7 your immediate attention.
See them now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
This article originally published on Zacks Investment Research (zacks.com).

The Top 3 Value Stocks to Buy in Berkshire Hathaway's Portfolio

Key Points
Berkshire Hathaway owns about 30 stocks, and three look like particularly good opportunities.
American Express and Ally Financial are two very different banks with a lot to like.
It's not difficult to see why Berkshire's leaders like Alphabet so much.
Berkshire Hathaway (NYSE: BRKA)(NYSE: BRKB) owns a collection of more than 60 businesses, but is perhaps best known for its massive stock portfolio. According to its latest SEC filings, Berkshire owns about 30 publicly traded stocks worth more than $300 billion.
To be sure, there's a solid investment case to be made for most of them. After all, Berkshire's leaders focus on businesses with clear competitive advantages and aim to buy at attractive valuations. But there are three in particular that I'd buy shares of right now, including one that Berkshire trimmed in the second quarter.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Without further delay, let's get right into the stocks.
A financial powerhouse
The first is American Express (NYSE:AXP), a stock Berkshire has owned for decades and the company's second-largest investment. Amex is best known as a credit card issuer, but it serves as both the lender and the payment network, a model used by only a couple of companies.
Image source: Getty Images.
This means that Amex earns interest income on the money it lends, and also gets fee income from every dollar its cardholders spend, whether they carry a balance or not. The "why now" is because of Amex's affluent cardholder base, which should help it hold up better if consumer spending pulls back.
Tremendous growth and profitability
Second is Alphabet (NASDAQ:GOOGL)(NASDAQ:GOOG), which is the stock Berkshire is buying most aggressively right now. In fact, after spending billions more in the second quarter, the Google parent company is now Berkshire's fourth-largest investment.
Both main sides of Alphabet's business (Google Services and Google Cloud) generate excellent cash flow, and the recent results from Cloud in particular have been impressive. With 82% revenue growth in the latest quarter and a $514 billion backlog, it is growing faster than its larger peers and is taking market share. Meanwhile, despite rapid growth and tremendous profitability, Alphabet trades for a very reasonable earnings multiple compared to its mega-cap peers.
A bank Berkshire has been selling
In the second quarter, Berkshire trimmed its stake in Ally Financial (NYSE:ALLY) by about 7%. For context, Berkshire sold shares of three bank stocks, with the other two being $1.7 billion worth of Bank of America (NYSE:BAC) and a 58% reduction in its Capital One (NYSE:COF) investment.
However, I'm a buyer of Ally. It's arguably the most successful branchless bank, with well over $100 billion in retail deposits. It's also the largest auto lender in the U.S. that isn't owned by an automaker.
In a higher-for-longer interest rate environment, Ally's net interest margin tends to widen as loan interest rates grow faster than deposit costs. Plus, Ally has been trading at a significant discount to book value, despite strong business results. To be fair, this is the most economically sensitive stock on this list, but Ally's risk-reward dynamics look attractive right now.
It's also worth noting that trimming 7% of Ally was most likely a position-sizing move rather than a bearish outlook from Berkshire. Specifically, Berkshire owns about 9% of Ally and aims to keep its stake below the 10% threshold that triggers increased regulatory scrutiny. Ally regularly buys back stock, so this could be simply to proactively avoid reaching 10% ownership over time.
The bottom line
All three of these stocks have attractive risk-reward profiles at their current prices, and are three very different businesses. Amex is a nice financial sector play that should hold up well if consumer confidence continues to erode. Alphabet is one of the most attractively valued ways to invest in the AI build-out. Although Ally has the highest consumer credit risk of the three, it is a leading lender with a strong history of responsible growth and risk management.
Should you buy stock in American Express right now?
Before you buy stock in American Express, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and American Express wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $410,024!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,372,815!*
Now, it’s worth noting Stock Advisor’s total average return is 950% — a market-crushing outperformance compared to 211% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of September 11, 2026.
Bank of America is an advertising partner of Motley Fool Money. American Express is an advertising partner of Motley Fool Money. Ally is an advertising partner of Motley Fool Money. Matt Frankel, CFP® has positions in American Express, Bank of America, and Berkshire Hathaway. The Motley Fool has positions in and recommends Alphabet, American Express, and Berkshire Hathaway. The Motley Fool recommends Capital One Financial. The Motley Fool has a disclosure policy.

3 Stocks Berkshire Hathaway Owns That I'd Buy Right Now, Including One It's Selling

Key Points
The Oracle of Omaha retired on Dec. 31, paving the way for Greg Abel to take control of Berkshire’s $360 billion investment portfolio.
Although Abel shook things up in the first quarter, the one trait he and Buffett share is concentrating Berkshire’s invested assets in their best ideas.
In addition to tech stocks suddenly being on the menu, financial stocks and Warren Buffett’s “indefinite” holdings should remain key elements of Berkshire Hathaway’s portfolio.
It's officially the beginning of a new era for one of Wall Street's most prized public companies. Warren Buffett's Dec. 31 retirement as CEO of Berkshire Hathaway (NYSE:BRKA)(NYSE:BRKB) paved the way for his protégé, Greg Abel, to take the reins. Although Buffett remains chair of Berkshire's board, it's Abel now overseeing the company's day-to-day operations and its $360 billion investment portfolio.
Abel was quick to make his mark, with Berkshire's new boss jettisoning 16 positions from the portfolio in the first quarter.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Warren Buffett retired as Berkshire's CEO on Dec. 31. Image source: The Motley Fool.
But the one clear carryover from the Oracle of Omaha to Abel is portfolio concentration. Both of Berkshire's bosses strongly believe in concentrating their company's invested capital in their best ideas. As of the closing bell on Sept. 4, Warren Buffett's successor had nearly 82% (almost $294 billion) of Berkshire Hathaway's invested assets in just 10 superstar stocks:
Apple (NASDAQ:AAPL): $72.93 billion (20.2% of invested assets)
Alphabet (NASDAQ:GOOGL)(NASDAQ:GOOG): $35.78 billion (9.9%, both share classes combined)
Bank of America (NYSE:BAC): $30.3 billion (8.4%)
Occidental Petroleum (NYSE:OXY): $15.91 billion (4.4%)
Tech stocks are on the menu
Perhaps the most noticeable difference between Berkshire's portfolio under Abel compared to Warren Buffett is that tech stocks are officially on the menu under new management. In addition to Apple retaining its top spot, Abel has piled into Google parent Alphabet since the year began.
Although Alphabet has an especially safe foundation, given the Google search engine's virtual monopoly in global internet search traffic, it's the company's artificial intelligence (AI) ambitions that are truly exciting. Since integrating generative AI and large language model capabilities into Google Cloud, sales for this considerably higher-margin segment have gone parabolic. Google Cloud registered 82% year-over-year sales growth in the June-ended quarter.
Financial stocks are still a pillar of Berkshire's portfolio
Even though Warren Buffett is no longer steering the ship, financial stocks remain a key part of Berkshire's long-term investment approach. Collectively, American Express, Bank of America, Moody's, and Chubb make up close to 29% of Berkshire's invested assets.
The beauty of financial stocks is their cyclical ties. Even though financial companies struggle during inevitable economic slowdowns and recessions, the non-linear nature of economic cycles strongly favors patient investors like Buffett and Abel. For instance, long-winded economic expansions allow Amex and BofA to prudently lend capital and generate meaningful interest income.
Image source: Getty Images.
Buffett's "indefinite" holdings aren't going anywhere
Lastly, Berkshire Hathaway's highly concentrated positions drive home the idea that Warren Buffett's "indefinite" holdings aren't going anywhere.
In the Oracle of Omaha's 2023 letter to shareholders (released in early 2024), he outlined eight stocks he viewed as indefinite/forever holdings. This included Coca-Cola, Amex, Occidental Petroleum, and all five Japanese trading houses, Mitsubishi among them.
While some of these companies are long-tenured holdings with otherworldly yields on cost, such as Coca-Cola and Amex (held since 1988 and 1991, respectively), they all represent relatively safe, reasonably valued, dividend-paying businesses that can benefit from global economic growth.
Should you buy stock in Berkshire Hathaway right now?
Before you buy stock in Berkshire Hathaway, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Berkshire Hathaway wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $410,024!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,372,815!*
Now, it’s worth noting Stock Advisor’s total average return is 950% — a market-crushing outperformance compared to 211% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of September 11, 2026.
American Express is an advertising partner of Motley Fool Money. Bank of America is an advertising partner of Motley Fool Money. Sean Williams has positions in Alphabet and Bank of America. The Motley Fool has positions in and recommends Alphabet, American Express, Apple, Berkshire Hathaway, Chevron, and Moody's. The Motley Fool recommends Occidental Petroleum. The Motley Fool has a disclosure policy.

Warren Buffett's Successor, Greg Abel, Has 82% of Berkshire's $360 Billion Portfolio Concentrated in 10 Superstar Stocks

Key Points
Robinhood is going to be a direct underwriter for the Oura IPO.
The company is moving beyond just making money on stock trades.
The stock looks expensive today.
Is Robinhood (NASDAQ: HOOD) trying to dethrone Goldman Sachs? Not quite, but it is slowly creeping toward becoming an investment bank for its individual client traders.
2026 is turning into the hottest initial public offering (IPO) year on record for capital raised, and Robinhood wants to turn that into value for its customers. For the first time ever, Robinhood will be an underwriter for an IPO, which will help deliver IPO allocations directly to its customers and generate direct revenue.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Does that make Robinhood stock a buy today?
Underwriting the Oura IPO
Soon, the smart ring and health insights company Oura Ring will go public via an IPO. It is looking to raise $3 billion from investment banks as a part of the IPO process and has chosen 18 banks to work with.
The last bank on the list is a surprise: Robinhood. The brokerage for individual investors is, for the first time, going to underwrite an IPO, meaning Oura will use it to sell stock directly to its Robinhood clients. This differs from Robinhood's previous IPO program for its customers, which simply served as an intermediary connecting clients to IPO allocations.
Now it can sell common stock directly to its customers, which could help it gain a competitive edge over other brokerages. If Robinhood is the best app for securing IPO allocations, it could drive greater customer adoption.
Emerging beyond just a brokerage
Robinhood's brokerage business is doing well today. Last quarter, transaction revenue grew 44% year over year to $776 million even as cryptocurrency revenue collapsed. This is due to steady growth from its stock-and-options trading platforms, along with rapid growth from its new events trading platform, which is similar to prediction markets like Polymarket.
In personal finance, Robinhood has moved toward becoming more of a bank, aiming to attract deposits and customers for its credit cards. Its "other" revenue grew 54% to $143 million last quarter, and it now says it has 13 business lines with annualized revenue of $100 million or more. This is much more than just a stock trading platform.
It recently launched a high-fee benefits card called Robinhood Platinum (stealing directly from the American Express brand) that could drive even more payments and subscription revenue. Robinhood's average revenue per user (ARPU) grew 24% year over year last quarter to $187 and has grown by 14% annually since 2020.
Should you buy Robinhood stock?
Right now, Robinhood trades at a market cap of $104 billion, making it one of the largest financial services companies in the world. Its trailing net income is $2 billion, giving the stock a price-to-earnings ratio (P/E) of around 51.
This is expensive for a stock trading platform, let alone a business trying to move into banking services (most banks trade around 10x earnings). Robinhood has shown investors it can grow by expanding into new product categories, such as the Robinhood Platinum card or this recent foray into investment banking to fund IPO shares for its customers. However, much of the future growth associated with these financial services products seems priced into the stock today.
Robinhood's net income grew 48% last quarter to $573 million. Remember, these are bull market earnings, too. Don't expect Robinhood's net income to grow at 48% per year in perpetuity. To reach $10 billion in annual earnings and a valuation that makes sense for a brokerage/banking stock, it will need to grow its net income by 5x. That will take many years even if this current earnings growth rate is upheld. It is likely best to wait to buy Robinhood stock until it reaches a cheaper level.
Should you buy stock in Robinhood Markets right now?
Before you buy stock in Robinhood Markets, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Robinhood Markets wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $410,024!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,372,815!*
Now, it’s worth noting Stock Advisor’s total average return is 950% — a market-crushing outperformance compared to 211% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of September 10, 2026.
American Express is an advertising partner of Motley Fool Money. Brett Schafer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends American Express. The Motley Fool has a disclosure policy.

Robinhood's New Role in the IPO Process Could Have It Earning Fees Like an Investment Bank

Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in Delta Air Lines Inc (Symbol: DAL), where a total volume of 32,470 contracts has been traded thus far today, a contract volume which is representative of approximately 3.2 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 66.6% of DAL's average daily trading volume over the past month, of 4.9 million shares. Particularly high volume was seen for the $80 strike call option expiring September 18, 2026, with 6,261 contracts trading so far today, representing approximately 626,100 underlying shares of DAL. Below is a chart showing DAL's trailing twelve month trading history, with the $80 strike highlighted in orange:
American Express Co. (Symbol: AXP) options are showing a volume of 14,587 contracts thus far today. That number of contracts represents approximately 1.5 million underlying shares, working out to a sizeable 62.5% of AXP's average daily trading volume over the past month, of 2.3 million shares. Particularly high volume was seen for the $330 strike call option expiring September 18, 2026, with 2,395 contracts trading so far today, representing approximately 239,500 underlying shares of AXP. Below is a chart showing AXP's trailing twelve month trading history, with the $330 strike highlighted in orange:
And Lumentum Holdings Inc (Symbol: LITE) saw options trading volume of 28,189 contracts, representing approximately 2.8 million underlying shares or approximately 61.1% of LITE's average daily trading volume over the past month, of 4.6 million shares. Especially high volume was seen for the $1020 strike call option expiring September 11, 2026, with 2,636 contracts trading so far today, representing approximately 263,600 underlying shares of LITE. Below is a chart showing LITE's trailing twelve month trading history, with the $1020 strike highlighted in orange:
For the various different available expirations for DAL options, AXP options, or LITE options, visit StockOptionsChannel.com.
Further DAL Research:

Noteworthy Thursday Option Activity: DAL, AXP, LITE

In the latest close session, American Express (AXP) was down 1.32% at $321.80. This move lagged the S&P 500's daily loss of 0.48%. Elsewhere, the Dow saw a downswing of 0.77%, while the tech-heavy Nasdaq depreciated by 0.64%.
The stock of credit card issuer and global payments company has fallen by 4.32% in the past month, lagging the Finance sector's loss of 0.68% and the S&P 500's loss of 0.97%.
Investors will be eagerly watching for the performance of American Express in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on October 23, 2026. The company's upcoming EPS is projected at $4.58, signifying a 10.63% increase compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $20.09 billion, reflecting a 9.05% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $17.68 per share and a revenue of $79.46 billion, demonstrating changes of +14.95% and +10.02%, respectively, from the preceding year.
Investors should also pay attention to any latest changes in analyst estimates for American Express. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.1% higher. Currently, American Express is carrying a Zacks Rank of #3 (Hold).
Investors should also note American Express's current valuation metrics, including its Forward P/E ratio of 18.44. This denotes a premium relative to the industry average Forward P/E of 11.72.
We can additionally observe that AXP currently boasts a PEG ratio of 1.39. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The average PEG ratio for the Financial - Miscellaneous Services industry stood at 1.15 at the close of the market yesterday.
The Financial - Miscellaneous Services industry is part of the Finance sector. This group has a Zacks Industry Rank of 103, putting it in the top 42% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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This article originally published on Zacks Investment Research (zacks.com).

Here's Why American Express (AXP) Fell More Than Broader Market

Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the State Street Financial Select Sector SPDR ETF (Symbol: XLF) where we have detected an approximate $444.1 million dollar inflow -- that's a 0.8% increase week over week in outstanding units (from 944,445,427 to 952,195,427). Among the largest underlying components of XLF, in trading today American Express Co. (Symbol: AXP) is down about 0.9%, Blackrock Inc (Symbol: BLK) is down about 0.8%, and Standard and Poors Global Inc (Symbol: SPGI) is lower by about 1.1%. For a complete list of holdings, visit the XLF Holdings page » The chart below shows the one year price performance of XLF, versus its 200 day moving average:
Looking at the chart above, XLF's low point in its 52 week range is $47.67 per share, with $58.60 as the 52 week high point — that compares with a last trade of $57.22. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Further XLF Research:

XLF, AXP, BLK, SPGI: Large Inflows Detected at ETF

Key Points
Warren Buffett and Greg Abel both aim to choose quality businesses and hold onto them for the long term.
This company is a market giant with a tremendous competitive advantage.
Warren Buffett led Berkshire Hathaway to six decades of market-beating returns thanks to his ability to choose quality companies and hold onto them for the long term. Buffett often made significant bets on a handful of players and stuck with them. For example, companies such as Coca-Cola and American Express have been among his leading positions for years.
Buffett retired at the end of 2025 and handed over the investment reins -- the chief executive officer position -- to Greg Abel. The billionaire carefully selected Abel, who already played a key role at the company as vice chairman of non-insurance business operations. And Abel pledged to continue on the Buffett-established track: favoring quality businesses, getting in at reasonable prices, and sticking with them over time.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Today, Abel has 68% of Berkshire Hathaway's portfolio invested in just five stocks. Here's my top pick for September.
Berkshire Hathaway's top five stocks
So, first, a quick look at the Berkshire Hathaway portfolio's five biggest positions, in order. They are Apple (NASDAQ: AAPL), American Express, Coca-Cola, Alphabet, and Bank of America. Each of these companies has been a major holding for years, with the exception of Alphabet. Buffett first bought that stock last year, and Abel significantly added to the position this year, showing a growing belief in the tech company's long-term prospects.
Now, of these five companies, which one is a top pick this month? The answer to that question is smartphone giant, Apple. The company, already a Buffett favorite as the company's No. 1 holding, is entering a particularly interesting period. John Ternus took over as CEO at the start of the month from Tim Cook. Cook did a tremendous job over 15 years, leading Apple through a period of many successes, including the quadrupling of revenue and the launching of key products such as the Apple Watch.
In recent quarters, though, Apple was slower to lean into artificial intelligence (AI) than other tech companies. Apple disappointed some investors when it delayed the release of the newest version of its virtual assistant Siri -- the launch, now expected this month, could highlight Apple's AI capabilities and offer the company a big boost in the AI market.
And speaking of this month, September generally represents a key moment for Apple as it is when the tech giant announces important product launches. In fact, Apple is hosting a launch event on Sept. 9, and investors are expecting the release of Apple Watches and iPhones, along with the Siri update (Siri AI) and the company's first-ever folding phone.
A focus on product innovation
The event also offers Ternus the opportunity to share his vision with Apple fans and investors. Ternus, who was senior vice president of hardware engineering prior to becoming CEO, has a solid engineering and product background -- elements that support a focus on product innovation. This suggests that Apple could possibly be entering a fresh era of product development, something that may pave the way to additional growth drivers down the road.
All of this is very positive for Apple and its investors moving forward and could add to momentum in September. Of course, before buying a stock, it's important to consider valuation. Apple, trading at 36x forward earnings estimates, isn't at its cheapest.
But the stock isn't ridiculously expensive considering what the company has to offer: Apple has an extremely strong moat, or competitive advantage, with fans generally sticking to the iPhone or other Apple products over time. This customer base has created an enormous opportunity for recurring revenue through the selling of services like digital storage and entertainment -- services revenue has reached records quarter after quarter in recent times. Finally, Apple offers investors stability thanks to this loyal customer base and the opportunity for growth due to its innovation and presence in areas such as AI -- even if it's been a late adopter.
All of this makes Apple -- a stock long backed by Buffett and also approved by Abel -- my top pick for September.
Should you buy stock in Apple right now?
Before you buy stock in Apple, consider this:
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Bank of America is an advertising partner of Motley Fool Money. American Express is an advertising partner of Motley Fool Money. Adria Cimino has positions in American Express. The Motley Fool has positions in and recommends Alphabet, American Express, Apple, and Berkshire Hathaway. The Motley Fool has a disclosure policy.

Warren Buffett's Hand-Picked Successor, Greg Abel, has 68% of Berkshire Hathaway's Portfolio Invested in Just 5 Stocks. Here's My Top Pick for September.

Key Points
Warren Buffett loves stocks that play an important role in the economy.
He looks for great management and dominance in the company's field.
He also loves dividend stocks, which demonstrate commitment to creating shareholder value.
It's the Greg Abel era at Berkshire Hathaway (NYSE: BRKA)(NYSE: BRKB), but it doesn't look too different than the Warren Buffett era. In fact, the most significant change started happening under Buffett's watch. That's the addition of Alphabet (NASDAQ: GOOG)(NASDAQ: GOOGL) to the portfolio, and Buffett claimed responsibility for the expansion of the position, which happened after he stepped down as CEO.
Alphabet now represents 9.9% of the total portfolio, the third-largest position. Apple (NASDAQ: AAPL) remains the largest position, accounting for 20.2%, and American Express (NYSE: AXP) is second at 13.7%. Coca-Cola (NYSE: KO) is down to fourth place, just behind Alphabet with 9.8%. Together, these four stocks make up 53.6% of Berkshire Hathaway's equity portfolio.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
1. Apple
Apple has been the largest position in the portfolio for years, and it grew to more than half of the total before management began selling it off at the end of 2023. Rather than signaling disappointment with the stock, which is still by far its biggest bet, it seems to have lowered its concentration risk.
Apple is everything Buffett always talks about. That starts with excellent management, and Tim Cook shepherded it to become the most valuable company in the world on his watch. John Ternus took over as CEO on Sept. 1, and he has honed his skills as an Apple veteran. It has a strong economic moat in its interconnected ecosystem of products people love. Customers who adopt the ecosystem typically purchase several Apple-branded products that work together and frequently upgrade to new models.
The iPhone continues to see incredible demand, and three of its models -- the iPhone 17, the iPhone 17 Pro Max, and the iPhone 17 Pro -- are the three best-selling smartphones in the world, according to Counterpoint Research. The iPhone 17 itself accounts for 6% of theglobal market That's a lead that's hard to compete with.
The company is also highly profitable, and perhaps most importantly for Buffett, it plays a large role in the economy as a consumer goods giant. Finally, it pays a dividend, and even though it yields only 0.3%, it demonstrates its commitment to its shareholders.
2. American Express
Buffett has praised American Express for its global, travel-friendly brand, and it's the classic Buffett stock in many ways. Like Apple, it plays a major role in the economy, and as a financial company, it helps drive economic activity.
However, it has a unique, differentiated model that sets it apart as an excellent business. It has a closed-loop credit card network, which means that it funds its own loans. It also has a stand-alone bank, and instead of forging partnerships with issuing banks, it handles everything in-house. That brings lots of cash into its system and allows the company to carefully curate its customer base and rewards program.
It also focuses on an affluent clientele that is more resilient under pressure and willing to pay annual fees for the privilege of using an Amex card and receiving the coveted rewards. The fees provide a recurring revenue source and go straight to the bottom line. Card fees increased 15% year over year in the 2026 second quarter, while total revenue increased 10%.
American Express' dividend yields 1.1% at the current price, and it has years of growth ahead as it powers the high-income U.S. consumer.
3. Alphabet
Alphabet is a recent Berkshire Hathaway buy and the portfolio's only real artificial intelligence (AI) stock. It's unlikely that Buffett and Abel bought it for AI, though. It's also a global tech giant because it holds dominant positions across many areas, starting with Search, where it has about 90% of the market, according to Statista.
YouTube and Android are two other dominant businesses, and of course, the AI business is skyrocketing. Google Cloud sales increased 82% year over year in the second quarter, and it has a $514 billion backlog that continues to grow.
Although Alphabet seems like a departure from the typical Buffett stock with its tech and AI focus, its leading position in several important businesses is consistent with what Buffett loves in great companies. In many ways, it's just getting started, and it has robust long-term opportunities.
4. Coca-Cola
Last but not least, Coca-Cola is Berkshire Hathaway's longest-held position. It was the stock Buffett was talking about when he said his favorite holding period is forever, and it continues to create value for the company.
Coca-Cola is a Dividend King, or a company that has raised its dividend for 50 years or more, with one of the longest track records on the market; this year was the 64th consecutive year that it raised its dividend. Berkshire Hathaway is scheduled to receive $848 million in dividends from Coca-Cola stock in 2026 alone, which implies a yield of 65% on the cost basis of the original position, which was $1.3 billion. That increases every year along with the dividend.
Like the other stocks on the list, Buffett loves Coca-Cola's leading position and its role as a beverage that loyal fans love in all conditions; it's unlikely to be replaced by new tech. The stock is trouncing the market this year, up 26% year to date as investors appreciate its strong performance despite inflation, and it should continue to reward shareholders for the foreseeable future.
Should you buy stock in Berkshire Hathaway right now?
Before you buy stock in Berkshire Hathaway, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Berkshire Hathaway wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $421,997!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,413,876!*
Now, it’s worth noting Stock Advisor’s total average return is 978% — a market-crushing outperformance compared to 213% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of September 8, 2026.
American Express is an advertising partner of Motley Fool Money. Jennifer Saibil has positions in American Express and Apple. The Motley Fool has positions in and recommends Alphabet, American Express, Apple, and Berkshire Hathaway. The Motley Fool has a disclosure policy.

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