Analyst Blog Stock Updates from Zacks
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 02 2026
0mins
Should l Buy AXP?
Source: NASDAQ.COM
- American Express Outperformance: American Express shares have risen 11.1% over the past year, significantly outperforming the Zacks Financial sector's -17.2%, driven by strong spending growth from Millennials and Gen Z, particularly in travel and dining, enhancing customer engagement and transaction volumes.
- Intuitive Surgical Strong Results: Intuitive Surgical exceeded revenue and EPS estimates in Q4, with 303 placements of the da Vinci 5 system, raising its installed base to 1,232, while global procedures grew 19% year-over-year, indicating robust market demand despite rising costs and budget constraints.
- Shopify's Continued Growth: Shopify shares gained 17.9% over the past year, although below the Internet Services sector's 72.6% growth, as new merchant-friendly tools and AI-driven solutions are helping merchants enhance customer engagement and support international expansion.
- Utah Medical Products Steady Performance: Utah Medical Products' shares rose 13.5% over the past year, with a market cap of $197.44 million and a strong cash position with no debt, providing flexibility for dividends and acquisitions, despite near-term risks from OEM/China exits impacting revenue replacement.
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Analyst Views on AXP
Wall Street analysts forecast AXP stock price to rise
21 Analyst Rating
8 Buy
12 Hold
1 Sell
Moderate Buy
Current: 329.870
Low
280.00
Averages
379.06
High
425.00
Current: 329.870
Low
280.00
Averages
379.06
High
425.00
About AXP
American Express Company is a global payments and premium lifestyle brand powered by technology. Its card-issuing, merchant-acquiring and card network businesses offer products and services to a broad range of customers, including consumers, small businesses, mid-sized companies and large corporations around the world. Its range of products and services includes credit and charge cards and complementary products and services, including travel, dining, lifestyle and expense management products and services; banking and other payment and financing products and services, including deposits and non-card lending; merchant acquisition and processing, servicing and settlement, fraud prevention, and point-of-sale marketing and information products and services, and network services. These products and services are offered through various channels, including mobile and online applications, affiliate marketing, customer referral programs, third-party service providers, and business partners.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
American Express Q1 Earnings Preview: Key Insights
- Billed Business Growth: American Express reported a 9% year-over-year increase in billed business for Q4 2025, reaching approximately $445 billion, indicating resilient consumer spending as the company approaches its Q1 2026 earnings report.
- Card Fee Revenue Surge: The net card fee revenue rose to $2.6 billion in Q4, up 17% year-over-year, highlighting the company's strategic shift towards affluent, fee-paying customers, which is expected to continue driving revenue growth.
- Youth Spending Dynamics: Spending from Gen Z and millennials surged, with Gen Z's billed business increasing by 38% and millennials by 12%, showcasing the company's success in attracting younger customers, despite the hefty marketing expenses of $6.3 billion.
- Credit Quality Monitoring: While American Express maintains strong credit quality, the net write-off rate increased to 2.1% in Q4, prompting investors to monitor this trend for potential impacts on the company's financial health in Q1.
See More
Capital One Reports Noisy Q1 Earnings Miss
- Weak Revenue Growth: Capital One's Q1 revenue increased 52% year-over-year to $15.23 billion, missing the $15.36 billion analyst consensus, indicating challenges in revenue growth that could impact future investor confidence.
- Adjusted EPS Decline: Adjusted earnings per share rose 15% year-over-year to $4.42, falling short of the $4.55 estimate, marking the second consecutive quarter of earnings misses and reflecting pressure on the company's profitability.
- Expense Management Issues: Non-interest expenses totaled $8.46 billion, exceeding the $8.3 billion analyst expectation, including approximately $893 million in one-time acquisition-related costs, although adjusted expenses were $7.58 billion, highlighting cost challenges during the integration process.
- Increased Credit Loss Reserves: Provisions for credit losses amounted to about $4.1 billion, slightly above expectations, primarily driven by the auto lending business, although management noted that consumer credit quality remains strong, with potential future impacts from rising energy prices.
See More
Analysis of SPY's One-Year Price Performance
- Price Range Analysis: SPY's 52-week low is $519.19 per share, with a high of $712.39, and the last trade at $710.52 indicates strong performance near its peak, potentially attracting more investor interest.
- Technical Analysis Tool: Comparing the current share price to the 200-day moving average serves as an effective technical analysis method, aiding investors in assessing market trends and potential buy or sell opportunities.
- ETF Trading Mechanism: ETFs trade similarly to stocks, where investors are buying and selling 'units' that can be created or destroyed based on investor demand, impacting the liquidity and market performance of the ETF.
- Inflows and Outflows Monitoring: Weekly monitoring of changes in shares outstanding helps identify significant inflows (new units created) or outflows (old units destroyed), which will affect the underlying holdings of the ETF and influence market dynamics.
See More
Analysis of Investment Value in Financial Companies
- Berkshire Hathaway's Cash Flow Advantage: Berkshire Hathaway generated $19.8 billion from its insurance operations last year, accounting for nearly 30% of total profits, and its cash reserve of $373 billion provides flexibility for acquisitions and stock buybacks, highlighting its strong potential for diversified investments.
- American Express's Brand Competitiveness: American Express operates a closed-loop payment network, processing payments while holding credit card loans and collecting interest, attracting a high-income customer base that enhances stability during economic fluctuations, with over 65% of new customers coming from millennials and Gen Z.
- Progressive's Profitability: As one of the largest auto insurers in the U.S., Progressive has maintained an average combined ratio of 92% over the past 20 years, significantly below the industry average of 99%, demonstrating its accurate risk pricing ability, with a net income of $11.3 billion last year and a special dividend of $13.50 per share.
- Industry Growth Potential: As the economy grows, financial companies like Berkshire, American Express, and Progressive continue to offer attractive opportunities for long-term investors due to their strong competitive advantages and stable cash flows, making them essential components of a diversified investment portfolio.
See More
Buffett Retires, Abel Takes Over as CEO of Berkshire Hathaway
- Leadership Transition: Warren Buffett retired on December 31, 2025, with Greg Abel stepping in to manage Berkshire Hathaway's $320 billion investment portfolio, marking a significant new era for the company.
- Investment Concentration: Abel's portfolio is heavily weighted, with 10 core holdings accounting for nearly 79% of assets, including Apple at $60 billion, highlighting the company's focus on high-quality assets and long-term growth potential.
- Sustainable Competitive Advantages: Among the 20 billion-dollar investments Abel oversees, many companies like Visa and Sirius XM operate as legal monopolies, ensuring stable revenue streams and risk resilience, reflecting Berkshire's investment strategy.
- Smaller Holdings Adjustment: Abel also manages 18 relatively smaller investments, with significant reductions like the 77% cut in Amazon's stake, indicating a focus on optimizing the portfolio and potentially paving the way for future trading opportunities.
See More
Warren Buffett Retires, Greg Abel Takes Over as CEO of Berkshire Hathaway
- Leadership Transition: Warren Buffett retired as CEO on December 31, 2025, with Greg Abel taking over the management of a $320 billion investment portfolio, marking a new era for Berkshire Hathaway, although Buffett remains as chairman of the board.
- Investment Philosophy Continuity: Abel shares a similar investment philosophy with Buffett, emphasizing value investing and sustainable competitive advantages, particularly by allocating a significant portion of the company's capital to their best ideas.
- Core Holdings Concentration: The ten core positions account for nearly 79% of Berkshire's invested assets, all of which pay dividends and engage in share repurchases, demonstrating strong capital return capabilities, with Abel's management style reflected in these choices.
- Smaller Investment Dynamics: Abel oversees 18 smaller holdings ranging from $5 million to approximately $692 million, many of which are being reduced or removed from the portfolio, indicating a dynamic adjustment strategy in response to market conditions.
See More
American Express Q1 Earnings Preview: Key Insights
- Billed Business Growth: American Express reported a 9% year-over-year increase in billed business for Q4 2025, reaching approximately $445 billion, indicating resilient consumer spending as the company approaches its Q1 2026 earnings report.
- Card Fee Revenue Surge: The net card fee revenue rose to $2.6 billion in Q4, up 17% year-over-year, highlighting the company's strategic shift towards affluent, fee-paying customers, which is expected to continue driving revenue growth.
- Youth Spending Dynamics: Spending from Gen Z and millennials surged, with Gen Z's billed business increasing by 38% and millennials by 12%, showcasing the company's success in attracting younger customers, despite the hefty marketing expenses of $6.3 billion.
- Credit Quality Monitoring: While American Express maintains strong credit quality, the net write-off rate increased to 2.1% in Q4, prompting investors to monitor this trend for potential impacts on the company's financial health in Q1.
See More
Capital One Reports Noisy Q1 Earnings Miss
- Weak Revenue Growth: Capital One's Q1 revenue increased 52% year-over-year to $15.23 billion, missing the $15.36 billion analyst consensus, indicating challenges in revenue growth that could impact future investor confidence.
- Adjusted EPS Decline: Adjusted earnings per share rose 15% year-over-year to $4.42, falling short of the $4.55 estimate, marking the second consecutive quarter of earnings misses and reflecting pressure on the company's profitability.
- Expense Management Issues: Non-interest expenses totaled $8.46 billion, exceeding the $8.3 billion analyst expectation, including approximately $893 million in one-time acquisition-related costs, although adjusted expenses were $7.58 billion, highlighting cost challenges during the integration process.
- Increased Credit Loss Reserves: Provisions for credit losses amounted to about $4.1 billion, slightly above expectations, primarily driven by the auto lending business, although management noted that consumer credit quality remains strong, with potential future impacts from rising energy prices.
See More
Analysis of SPY's One-Year Price Performance
- Price Range Analysis: SPY's 52-week low is $519.19 per share, with a high of $712.39, and the last trade at $710.52 indicates strong performance near its peak, potentially attracting more investor interest.
- Technical Analysis Tool: Comparing the current share price to the 200-day moving average serves as an effective technical analysis method, aiding investors in assessing market trends and potential buy or sell opportunities.
- ETF Trading Mechanism: ETFs trade similarly to stocks, where investors are buying and selling 'units' that can be created or destroyed based on investor demand, impacting the liquidity and market performance of the ETF.
- Inflows and Outflows Monitoring: Weekly monitoring of changes in shares outstanding helps identify significant inflows (new units created) or outflows (old units destroyed), which will affect the underlying holdings of the ETF and influence market dynamics.
See More
Analysis of Investment Value in Financial Companies
- Berkshire Hathaway's Cash Flow Advantage: Berkshire Hathaway generated $19.8 billion from its insurance operations last year, accounting for nearly 30% of total profits, and its cash reserve of $373 billion provides flexibility for acquisitions and stock buybacks, highlighting its strong potential for diversified investments.
- American Express's Brand Competitiveness: American Express operates a closed-loop payment network, processing payments while holding credit card loans and collecting interest, attracting a high-income customer base that enhances stability during economic fluctuations, with over 65% of new customers coming from millennials and Gen Z.
- Progressive's Profitability: As one of the largest auto insurers in the U.S., Progressive has maintained an average combined ratio of 92% over the past 20 years, significantly below the industry average of 99%, demonstrating its accurate risk pricing ability, with a net income of $11.3 billion last year and a special dividend of $13.50 per share.
- Industry Growth Potential: As the economy grows, financial companies like Berkshire, American Express, and Progressive continue to offer attractive opportunities for long-term investors due to their strong competitive advantages and stable cash flows, making them essential components of a diversified investment portfolio.
See More
Buffett Retires, Abel Takes Over as CEO of Berkshire Hathaway
- Leadership Transition: Warren Buffett retired on December 31, 2025, with Greg Abel stepping in to manage Berkshire Hathaway's $320 billion investment portfolio, marking a significant new era for the company.
- Investment Concentration: Abel's portfolio is heavily weighted, with 10 core holdings accounting for nearly 79% of assets, including Apple at $60 billion, highlighting the company's focus on high-quality assets and long-term growth potential.
- Sustainable Competitive Advantages: Among the 20 billion-dollar investments Abel oversees, many companies like Visa and Sirius XM operate as legal monopolies, ensuring stable revenue streams and risk resilience, reflecting Berkshire's investment strategy.
- Smaller Holdings Adjustment: Abel also manages 18 relatively smaller investments, with significant reductions like the 77% cut in Amazon's stake, indicating a focus on optimizing the portfolio and potentially paving the way for future trading opportunities.
See More
Warren Buffett Retires, Greg Abel Takes Over as CEO of Berkshire Hathaway
- Leadership Transition: Warren Buffett retired as CEO on December 31, 2025, with Greg Abel taking over the management of a $320 billion investment portfolio, marking a new era for Berkshire Hathaway, although Buffett remains as chairman of the board.
- Investment Philosophy Continuity: Abel shares a similar investment philosophy with Buffett, emphasizing value investing and sustainable competitive advantages, particularly by allocating a significant portion of the company's capital to their best ideas.
- Core Holdings Concentration: The ten core positions account for nearly 79% of Berkshire's invested assets, all of which pay dividends and engage in share repurchases, demonstrating strong capital return capabilities, with Abel's management style reflected in these choices.
- Smaller Investment Dynamics: Abel oversees 18 smaller holdings ranging from $5 million to approximately $692 million, many of which are being reduced or removed from the portfolio, indicating a dynamic adjustment strategy in response to market conditions.
See More
