AXP Should I Buy
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American Express Co (AXP) is a good buy for a beginner investor with a long-term strategy and $50,000-$100,000 available for investment. Despite recent price declines, the company's strong financial performance, positive analyst sentiment, and its position as a key Berkshire Hathaway holding make it an attractive long-term investment.
The stock's MACD is negative (-2.591) and contracting, indicating bearish momentum. RSI is at 29.317, close to oversold territory, suggesting a potential buying opportunity. The stock is trading near its key support level (S1: 303.998), which could act as a floor for further declines. However, moving averages are converging, showing no clear trend.
Wells Fargo sees the recent selloff as a buying opportunity, maintaining an Overweight rating and a $425 price target.
American Express benefits from a strong affluent customer base and stimulus-driven consumer strength.
Berkshire Hathaway's significant holding in AXP and its recent share buybacks reflect confidence in the company's long-term potential.
Financial performance in Q4 2025 showed strong YoY growth in revenue (+5.86%), net income (+13.56%), and EPS (+15.79%).
Concerns over consumer spending and potential white-collar job losses due to AI have negatively impacted sentiment.
Analysts have slightly lowered price targets recently, reflecting cautious optimism.
Competitive pressure from Robinhood's new Platinum credit card targeting high-income consumers.
In Q4 2025, American Express reported revenue growth of 5.86% YoY to $14.34 billion, net income growth of 13.56% YoY to $2.43 billion, and EPS growth of 15.79% YoY to $3.52. Gross margin increased to 85.63%, up 0.80% YoY, indicating strong operational efficiency.
Analyst sentiment is mixed to positive. Wells Fargo maintains an Overweight rating with a $425 price target, while other firms like Evercore ISI and UBS have slightly lowered price targets but maintain Neutral or Buy ratings. BTIG is bearish with a Sell rating and a $328 target, citing decelerating revenue growth.
