Jim Cramer says this post-earnings sell-off is a golden buying opportunity

Some banal drops look similar atrocious quality connected the surface. Some are, yes, but immoderate besides archer a wholly antithetic communicative underneath.

And I deliberation American Express (AXP) investors person been handed the latter. The payments elephantine bushed net expectations, raised its full-year gross guidance, and reported its strongest paper subordinate spending maturation successful 3 years. The banal fell anyway.

This benignant of absorption tin frustrate shareholders and adjacent confuse casual observers. But for "Mad Money" big Jim Cramer, it's a signifier he's seen before, and 1 helium thinks is creating a wide opening.

I deliberation it's a terrific accidental successful 1 of the best-run companies connected earth.

American Express CEO Steve Squeri echoed that assurance successful the company's Q2 2026 net statement, noting: "Six months into the year, we're seeing stronger momentum than we expected."

Also Read: History of American Express: Company timeline & facts

Jim Cramer connected wherefore the marketplace work the AXP net incorrect

Cramer's statement comes down to a azygous distinction. And it is 1 the marketplace appears to person missed.

American Express bushed net expectations successful Q2 2026 and raised its full-year gross maturation guidance to astir 10%, according to a institution statement. Earnings per stock (EPS) came successful astatine $4.53, up 11% year-over-year (YoY). Net income reached $3.11 billion, up 8% from the aforesaid play a twelvemonth earlier.

So wherefore did the banal fall?

The reply lies successful what absorption chose not to do. Instead of accelerating stock repurchases, which would person boosted EPS much quickly, Squeri announced the institution would reinvest its outperformance into maturation initiatives. 

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Full-year EPS guidance remained unchanged astatine $17.30 to $17.90. Investors work the unchanged EPS scope arsenic a reddish flag. Cramer work it otherwise successful his fewer words.

The 176-year-old American Express is prioritizing semipermanent maturation implicit boosting net per share, and that's precisely wherefore I besides deliberation the banal is simply a buy.

Investing.com's net telephone transcript information showed a 36% instrumentality connected equity during the quarter. That's grounds that the strategy is working. Return connected equity measures however efficiently a institution converts shareholder wealth into profit, and 36% is fair.

"Based connected Steve Squeri's way record, I deliberation helium deserves the payment of the uncertainty here, which is wherefore I'd beryllium a buyer," Cramer said.