AmEx & Visa: Buffett's Beaten-Down Buys?

Investors considering financial stocks like American Express (AXP) and Visa (V) must evaluate profit potential and valuation. Both companies, significant holdings of Berkshire Hathaway, have seen poor stock performance in 2026. American Express thrives on its premium brand, attracting affluent customers and demonstrating resilience with fee increases.

Visa, distinct from AmEx as it doesn't lend, operates a highly profitable payments infrastructure. Its business model benefits from a powerful network effect, making disruption unlikely. Despite differing business models, both companies are projected to see substantial earnings per share growth over the next three years.

While both are considered smart buys, American Express, with a P/E ratio of 21.3 compared to Visa's 29.8, may offer a higher return potential. Analysts anticipate American Express' EPS to grow at 14.9% annually, versus Visa's 12.5%.