AXP Leads the Pack, CRI and IBM Lag Behind

American Express (AXP) stands out as an attractive investment opportunity due to its impressive financial performance. With a trailing 12-month GAAP operating margin of 20.8%, AXP demonstrates its ability to maintain high profitability.

On the other hand, Carter's (CRI) and IBM (IBM) show weaker prospects. CRI has struggled with disappointing same-store sales over the past two years, indicating a decline in customer satisfaction with its product selection and in-store experience. Its poor free cash flow margin of 7.5% for the last two years limits its ability to invest in growth initiatives or pay dividends.

IBM's annual sales growth of 4.3% over the last five years lags behind its peers, making it difficult to generate incremental demand. Additionally, its anticipated sales growth of 4.1% for the next year implies shaky demand and a potential decline in earnings per share.