Jim Cramer Says "Buy the Dip for American Express Tomorrow"

American Express Company (NYSE:AXP) is one of the stocks that Jim Cramer shared thoughts on. Cramer suggested to “buy the dip”, as he said:

“Sure enough, when Amex reported last Friday morning, the company delivered a strong quarter, and the stock still tumbled $7 or 2.3% before slipping another 1.6% today. My gut instinct says that this will once again prove to be a good buying opportunity, but my brain says we need to do the homework and make sure the stock’s still worth owning first… Let me tell you the three big things that I liked about the quarter. First, I remain impressed by how American Express is doing on the credit quality front…

When you’re looking at, you’re trying to game the long-term business here, the health, well, with the success of young consumers, I think that’s incredibly important, and this company has figured out because you want to know what’s the long-term, some of these guys are going to max out when the baby boomers are gone.

Still, why is American Express doing so well with younger people in particular? That leads me to the last thing that I really liked about Amex’s report last Friday, which is the way CEO Steve Squeri talked about some of the competitive dynamics of the credit card space. He explained that his company is winning because it offers the best value proposition, even if that’s with a fee-based product…

So here’s the bottom line: Once again, American Express sold off in response to what looked like a good quarter, and just as predicted, my gut instinct says, you know what, this was what we said all the time, we said it would go down. We called it a buying opportunity. We waited till today, and history says that tomorrow’s the day to buy. After looking through the quarter, I’m now confident my gut instinct was right. Buy the dip for American Express tomorrow.”

American Express (NYSE:AXP) provides a wide range of payment, financing, and expense management products and services, including credit cards, banking tools, and travel benefits. The company also offers merchant services, fraud prevention, loyalty programs, and airport lounges.

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Disclosure: None. This article is originally published at Insider Monkey.