Can AXP Keep Its ROE Shining While Expenses Climb the Ladder?

American Express (AXP) has maintained a high return on equity (ROE) despite rising expenses due to strategic investments in growth, brand visibility, and digital expansion, alongside disciplined credit management. While expenses for AXP and its competitors like Visa (V) and Mastercard (MA) are increasing, American Express leverages innovation and customer engagement to sustain strong returns and has returned significant value to shareholders through buybacks and dividends. AXP's stock has outperformed its industry year-to-date, and its valuation and earnings estimates suggest continued growth.