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New York-based American Express Company (AXP) is an integrated payments company operating through U.S. Consumer Services, Commercial Services, International Card Services, and Global Merchant and Network Services segments. With a market cap of $206.4 billion, its operations span the Americas, Indo-Pacific, Europe, Africa, and internationally.
The payments giant has significantly outperformed the broader market over the past year. Over the past 52 weeks, AXP stock soared 89.8%, outpacing the S&P 500 Index’s ($SPX) 35.9% returns. In 2024 alone, AXP surged 56.4% compared to SPX’s 25.8% gains on a YTD basis.
Narrowing the focus, AXP has also outpaced the Amplify Digital Payments ETF’s (IPAY) 54.5% returns over the past 52 weeks and 29.3% gains on a YTD basis.
AXP stock prices dipped 3.2% after the release of its Q3 earnings on Oct. 18. The company reported an 8.2% year-over-year growth in total revenues net of interest expenses, reaching $16.6 billion, which fell short of analysts’ topline estimates by a small margin. However, American Express maintained a streak of 10 consecutive quarters of record revenue, driven by strong card member spending growth, an 18% rise in card fee revenue, and the addition of 3.3 million new premium card acquisitions, highlighting the strength of its business model and ongoing investments for growth.
Moreover, AXP has also observed 5.8% year-over-year growth in adjusted EPS to $3.49, exceeding analysts' consensus estimates by a notable 6.7%. Observing the solid performance during the quarter, the company raised its full-year adjusted EPS guidance to $13.75 - $14.05.
For the current fiscal year, ending in December, analysts expect AXP to report a 19.5% year-over-year growth in adjusted EPS to $13.40. AXP’s earnings surprise history is mixed. It exceeded analysts' bottom-line estimates in three of the past four quarters while missing on another occasion.
AXP has a consensus “Moderate Buy” rating overall. Out of the 28 analysts covering the stock, nine recommend “Strong Buy,” two advise “Moderate Buy,” 14 suggest “Hold,” and three advocate a “Strong Sell” rating.
This configuration is less bullish than three months ago, with 11 “Strong Buy” ratings on the stock.
On Oct. 21, TD Cowen analyst Moshe Orenbuch maintained a “Hold” rating while raising the price target to $268.
As of writing, AXP is trading above its mean price target of $273.72. The Street-high target of $325 suggests a potential upside of 10.9% from current price levels.
On the date of publication, Aditya Sarawgi 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.
