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With a market cap of $223.1 billion, American Express Company (AXP) is a global financial services firm specializing in payment card products, banking, and travel-related services to consumers and businesses. It also provides merchant services, fraud prevention, customer loyalty programs, and operates airport lounges under the Centurion Lounge brand.
The credit card and payments company's shares have outperformed the broader market over the past 52 weeks. AXP has increased 46.2% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 20.7%. On a YTD basis, shares of AXP are up 4.7%, compared to SPX’s 3.2% gain.
In addition, the New York-based company has also outpaced the Financial Select Sector SPDR Fund’s (XLF) 31.7% return over the past 52 weeks.
Despite reporting a better-than-expected Q4 EPS of $3.04 and revenue of $17.2 billion, American Express stock fell 1.4% on Jan. 24 due to underwhelming guidance for 2025. The company projected full-year EPS of $15 - $15.50, with a midpoint of $15.25, which was slightly below Wall Street’s consensus estimate. Investors were also concerned about rising customer engagement and marketing expenses, which increased total costs by 11% year-over-year. Additionally, weaker-than-expected performance in key segments like International Card Services and Global Merchant and Network Services contributed to negative sentiment.
For the current fiscal year, ending in December 2025, analysts expect AXP’s EPS to grow 14.8% year-over-year to $15.33. The company’s earnings surprise history is promising. It beat the consensus estimates in the last four quarters.
Among the 29 analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on nine “Strong Buy” ratings, two “Moderate Buys,” 15 “Holds,” and three “Strong Sells.”
On Jan. 27, Monness Crespi raised its price target on American Express to $355, maintaining a “Buy” rating, citing a prudently set 2025 outlook
As of writing, AXP is trading below the mean price target of $316.58. The Street-high price target of $371 implies a potential upside of 19.5% from the current price levels.
