Goldman Sachs Comments On American Credit Cards

According to a recent report from Goldman Sachs, credit card stocks have outperformed thus far in 2011; However, due to their belief that credit benefits will soon subside, American Express (NYSE: AXP) seems to be in a better position than Discover Financial Services (NYSE: DFS) and Capital One Financial (NYSE: COF) for the upcoming transition.

According to the report, the American Express offers a high-end business model that generates high growth. In the report, Goldman Sachs said, "While DFS and COF (both Neutral) continue to benefit from better credit metrics, we believe these are already reflected in estimates and with top-line growth remaining challenging, we see limited near-term upside."

Yesterday, AXP closed at $51.82, DFS closed at $25.68 and COF closed at $56.21.