Time to buy shares in credit card giants?

04.10.2023

The financial sector took the brunt of the market’s volatility, with bank stocks falling sharply today and the XLF Financial Select Sector ETF down more than 1%.

With financial companies falling, investors may be keeping an eye on shares of American Express AXP, Visa V and Mastercard MA to determine if a better opportunity to buy shares of these credit card and transaction services giants might present itself.

With all three stocks down more than 1% today, whether the recent volatility in the market has actually created a better opportunity and whether now is a good time to buy.

Despite the recent pullback, Mastercard and Visa stocks are still up +30% and +23%, respectively, outperforming the S&P 500 Index by +13% and easily outperforming the virtually unchanged year-to-date performance of American Express stock.

However, over the past three years, American Express’ +45% dividend-adjusted total return outperforms Mastercard’s +16% and Visa’s +15%, and outperforms the benchmark.