/American%20Express%20Co_%20office%20sign-%20by%20JHVEPhoto%20via%20Shutterstock.jpg)
American Express Company (AXP), with a market cap of $186 billion, operates as a leading diversified financial services firm. The New York-based company offers a wide array of services, including credit and charge cards, merchant services, and travel-related products, catering to consumers and businesses worldwide.
Companies valued at $10 billion or more are generally considered "large-cap" stocks and American Express fits this criterion perfectly. It is well-known for its premium card offerings, excelling at delivering exclusive benefits to high-spending customers. It has a solid global presence, catering to a diverse range of clients with its comprehensive service portfolio.
American Express touched its 52-week high of $261.75 in the Aug. 30 trading session. Shares of American Express have edged up 9% over the past three months, underperforming the broader Financial Select Sector SPDR Fund’s (XLF) 11.5%gains over the same time frame.
Over the longer term, AXP is up 38.1% on a YTD basis, outpacing the XLF's 21.7% gains. Moreover, shares of American Express have surged 61.4% over the past 52 weeks, compared to XLF's 32.6% returns over the same time frame.
To confirm the bullish price trend, AXP has been trading above its 200-day moving average since mid-November last year and has mostly remained above its 50-day moving average, with a few fluctuations.
Despite recent headwinds in the economy, American Express has consistently outperformed the broader market this year as its cardholders continue to spend. However, despite reporting robust financial results, American Express shares fell by 2.7% following its Q2 earnings release on Jul. 19. Although the company’s adjusted EPS grew an impressive 20.8% annually to $3.49, which surpassed the estimates, its total revenues net of interest expense rose by 8.5% to $16.3 billion, falling short of analyst expectations.
To emphasize the stock’s outperformance, top rival Mastercard Incorporated (MA) is underperforming AXP. Shares of Mastercard have gained 17.4% over the past 52 weeks and are up 13.3% on a YTD basis.
Analysts are reasonably optimistic about AXP stock's prospects. The stock has a consensus rating of "Moderate Buy" from the 25 analysts covering the stock, and the stock is currently trading above the mean price target of $240.71.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
