American Express Shows Strong Growth, Attracts Younger Consumers
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
0mins
Source: NASDAQ.COM
- Significant Performance Growth: American Express has achieved a total return of 467% over the past decade, and despite its current stock price being 20% below last December's peak, it still significantly outperforms the S&P 500's 327% return, indicating strong market performance and investment appeal.
- Revenue and Profit Increase: By Q1 2026, the company is expected to see an annual revenue growth of 8.9% and diluted earnings per share growth of 11.4%, providing robust fundamentals that support stock price appreciation and attract long-term investors.
- Attraction of Younger Consumers: American Express has successfully attracted younger consumers, with the CEO noting that millennials' spending power is expected to increase over time, further driving revenue growth and showcasing the brand's long-term value and market potential.
- Reasonable Valuation: Currently, American Express's price-to-earnings ratio stands at 19.3, down 20% from early 2026, offering investors a reasonable entry point, despite facing macroeconomic risks and competitive pressures, its leadership in the premium credit card market remains strong.
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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: 310.720
Low
280.00
Averages
379.06
High
425.00
Current: 310.720
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 Shows Strong Growth, Attracts Younger Consumers
- Significant Performance Growth: American Express has achieved a total return of 467% over the past decade, and despite its current stock price being 20% below last December's peak, it still significantly outperforms the S&P 500's 327% return, indicating strong market performance and investment appeal.
- Revenue and Profit Increase: By Q1 2026, the company is expected to see an annual revenue growth of 8.9% and diluted earnings per share growth of 11.4%, providing robust fundamentals that support stock price appreciation and attract long-term investors.
- Attraction of Younger Consumers: American Express has successfully attracted younger consumers, with the CEO noting that millennials' spending power is expected to increase over time, further driving revenue growth and showcasing the brand's long-term value and market potential.
- Reasonable Valuation: Currently, American Express's price-to-earnings ratio stands at 19.3, down 20% from early 2026, offering investors a reasonable entry point, despite facing macroeconomic risks and competitive pressures, its leadership in the premium credit card market remains strong.
See More
ASID Launches Purpose-Built Credit Card for Designers
- Credit Card Partnership: Mercantile has partnered with the American Society of Interior Designers (ASID) to launch the American Express® Business Card tailored for designers, aimed at addressing the cash flow needs of independent designers and small design firms, thereby enhancing their project expense management.
- Financial Tool Innovation: The new card offers flexible credit limits and reward mechanisms to help designers navigate complex project timelines and client payment cycles, thus improving operational efficiency and promoting sustainable growth.
- Industry Support: ASID President Khoi Vo emphasized that this partnership reflects ASID's commitment to strengthening the business side of design, highlighting the importance of providing designers with the right resources to focus on creating spaces that enhance people's lives.
- Market Expansion Plans: This ASID program marks the beginning of Mercantile's collaboration with various professional associations, with plans to roll out more credit card programs tailored to the unique needs of different professions, further supporting the growth of small businesses and entrepreneurs.
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- Price Range Analysis: The XLF ETF's 52-week low is $47.67 per share and the high is $56.515, with the last trade at $51.88, indicating stability and potential investment appeal in the current market environment.
- Technical Analysis Tool: Comparing the latest share price to the 200-day moving average provides valuable insights for investors, helping to assess market trends and potential buy or sell opportunities.
- ETF Unit Trading Mechanism: Exchange-traded funds (ETFs) trade similarly to stocks, where investors are buying and selling 'units' that can be created or destroyed based on investor demand, impacting liquidity and market performance.
- Inflows and Outflows Monitoring: Weekly monitoring of changes in shares outstanding helps identify ETFs experiencing notable inflows (new units created) or outflows (old units destroyed), allowing for assessment of their impact on underlying assets and market dynamics.
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Dow Jones Index Celebrates 130th Anniversary with Key Stock Insights
- Dow Component Changes: Since its establishment in 1896, the Dow Jones Index has seen significant changes in its components, with recent additions like Nvidia and Amazon reflecting economic evolution, shifting investor perception from traditional low-growth stocks to a modern blend of growth and value stocks.
- Nvidia's Dividend Surge: On May 20, Nvidia raised its quarterly dividend from $0.01 to $1 per share, a staggering 2400% increase, which, despite a current yield of only 0.5%, attracts investors seeking passive income and indicates a shift towards a more stable earnings model amid surging AI demand.
- Visa's Strong Financial Performance: Despite economic uncertainties, Visa achieved a 9% increase in payment volume in its latest quarter, with valuations at 30 times free cash flow and 29 times earnings, showcasing the resilience of its business model and providing a compelling buying opportunity for investors despite stock price declines.
- Procter & Gamble's Rising Dividend Yield: Procter & Gamble raised its dividend for the 70th consecutive year in April, with a current yield of 3%, and despite challenges in volume growth, its strong brand portfolio positions it as an ideal choice for risk-averse investors, trading at a P/E of just 21, below its 10-year average of 25.4.
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Nvidia Makes Significant Dividend Increase
- Dividend Surge: Nvidia raised its quarterly dividend from $0.01 to $1 per share on May 20, marking a staggering 2,400% increase, which, despite a low yield of 0.5%, makes it more attractive for investors seeking passive income.
- Market Share Expansion: Nvidia has broadened its market share in data centers by delivering new rack-scale solutions, including multi-chip systems to Anthropic, OpenAI, Oracle, and SpaceX on May 18, indicating strong growth potential amid surging AI demand.
- Visa Investment Opportunity: Despite a 6.2% decline in Visa's stock year-to-date, its reasonable valuation at 30 times free cash flow and 29 times earnings presents an excellent buying opportunity, with double-digit revenue and earnings growth reflecting its robust business model.
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American Express Achieves 467% Return Over Decade
- Decade Return: As of May 20, American Express shares have generated a total return of 467% over the past decade, transforming an initial investment of $10,000 into $56,700, demonstrating its strong compounding ability, even though the stock is currently 20% off its peak from last December.
- Strong Financial Performance: Between Q1 2016 and Q1 2026, the company's revenue grew at an annualized rate of 8.9%, while diluted earnings per share increased at an impressive annual rate of 11.4%, providing robust support for stock price appreciation and reflecting its superior position in the financial services sector.
- Attraction of Younger Consumers: American Express has successfully attracted younger consumers, with CEO Stephen Squeri noting that millennials capture a high share of their wallet early on, which translates into increased spending over time, thereby driving future revenue growth for the company.
- Reasonable Valuation: Despite ongoing macro risks related to credit quality and competitive threats, American Express's current P/E ratio of 19.3 is 20% cheaper than at the start of 2026, presenting a reasonable entry point for investors and highlighting its value as a high-quality business.
See More
American Express Shows Strong Growth, Attracts Younger Consumers
- Significant Performance Growth: American Express has achieved a total return of 467% over the past decade, and despite its current stock price being 20% below last December's peak, it still significantly outperforms the S&P 500's 327% return, indicating strong market performance and investment appeal.
- Revenue and Profit Increase: By Q1 2026, the company is expected to see an annual revenue growth of 8.9% and diluted earnings per share growth of 11.4%, providing robust fundamentals that support stock price appreciation and attract long-term investors.
- Attraction of Younger Consumers: American Express has successfully attracted younger consumers, with the CEO noting that millennials' spending power is expected to increase over time, further driving revenue growth and showcasing the brand's long-term value and market potential.
- Reasonable Valuation: Currently, American Express's price-to-earnings ratio stands at 19.3, down 20% from early 2026, offering investors a reasonable entry point, despite facing macroeconomic risks and competitive pressures, its leadership in the premium credit card market remains strong.
See More
ASID Launches Purpose-Built Credit Card for Designers
- Credit Card Partnership: Mercantile has partnered with the American Society of Interior Designers (ASID) to launch the American Express® Business Card tailored for designers, aimed at addressing the cash flow needs of independent designers and small design firms, thereby enhancing their project expense management.
- Financial Tool Innovation: The new card offers flexible credit limits and reward mechanisms to help designers navigate complex project timelines and client payment cycles, thus improving operational efficiency and promoting sustainable growth.
- Industry Support: ASID President Khoi Vo emphasized that this partnership reflects ASID's commitment to strengthening the business side of design, highlighting the importance of providing designers with the right resources to focus on creating spaces that enhance people's lives.
- Market Expansion Plans: This ASID program marks the beginning of Mercantile's collaboration with various professional associations, with plans to roll out more credit card programs tailored to the unique needs of different professions, further supporting the growth of small businesses and entrepreneurs.
See More
Analysis of XLF ETF's 52-Week Price Fluctuations
- Price Range Analysis: The XLF ETF's 52-week low is $47.67 per share and the high is $56.515, with the last trade at $51.88, indicating stability and potential investment appeal in the current market environment.
- Technical Analysis Tool: Comparing the latest share price to the 200-day moving average provides valuable insights for investors, helping to assess market trends and potential buy or sell opportunities.
- ETF Unit Trading Mechanism: Exchange-traded funds (ETFs) trade similarly to stocks, where investors are buying and selling 'units' that can be created or destroyed based on investor demand, impacting liquidity and market performance.
- Inflows and Outflows Monitoring: Weekly monitoring of changes in shares outstanding helps identify ETFs experiencing notable inflows (new units created) or outflows (old units destroyed), allowing for assessment of their impact on underlying assets and market dynamics.
See More
Dow Jones Index Celebrates 130th Anniversary with Key Stock Insights
- Dow Component Changes: Since its establishment in 1896, the Dow Jones Index has seen significant changes in its components, with recent additions like Nvidia and Amazon reflecting economic evolution, shifting investor perception from traditional low-growth stocks to a modern blend of growth and value stocks.
- Nvidia's Dividend Surge: On May 20, Nvidia raised its quarterly dividend from $0.01 to $1 per share, a staggering 2400% increase, which, despite a current yield of only 0.5%, attracts investors seeking passive income and indicates a shift towards a more stable earnings model amid surging AI demand.
- Visa's Strong Financial Performance: Despite economic uncertainties, Visa achieved a 9% increase in payment volume in its latest quarter, with valuations at 30 times free cash flow and 29 times earnings, showcasing the resilience of its business model and providing a compelling buying opportunity for investors despite stock price declines.
- Procter & Gamble's Rising Dividend Yield: Procter & Gamble raised its dividend for the 70th consecutive year in April, with a current yield of 3%, and despite challenges in volume growth, its strong brand portfolio positions it as an ideal choice for risk-averse investors, trading at a P/E of just 21, below its 10-year average of 25.4.
See More
Nvidia Makes Significant Dividend Increase
- Dividend Surge: Nvidia raised its quarterly dividend from $0.01 to $1 per share on May 20, marking a staggering 2,400% increase, which, despite a low yield of 0.5%, makes it more attractive for investors seeking passive income.
- Market Share Expansion: Nvidia has broadened its market share in data centers by delivering new rack-scale solutions, including multi-chip systems to Anthropic, OpenAI, Oracle, and SpaceX on May 18, indicating strong growth potential amid surging AI demand.
- Visa Investment Opportunity: Despite a 6.2% decline in Visa's stock year-to-date, its reasonable valuation at 30 times free cash flow and 29 times earnings presents an excellent buying opportunity, with double-digit revenue and earnings growth reflecting its robust business model.
- Procter & Gamble Stability: Procter & Gamble raised its dividend for the 70th consecutive year in April, and despite sluggish volume growth leading to a mere 4.7% stock price increase over five years, its 21 times earnings valuation remains attractive for risk-averse investors.
See More
American Express Achieves 467% Return Over Decade
- Decade Return: As of May 20, American Express shares have generated a total return of 467% over the past decade, transforming an initial investment of $10,000 into $56,700, demonstrating its strong compounding ability, even though the stock is currently 20% off its peak from last December.
- Strong Financial Performance: Between Q1 2016 and Q1 2026, the company's revenue grew at an annualized rate of 8.9%, while diluted earnings per share increased at an impressive annual rate of 11.4%, providing robust support for stock price appreciation and reflecting its superior position in the financial services sector.
- Attraction of Younger Consumers: American Express has successfully attracted younger consumers, with CEO Stephen Squeri noting that millennials capture a high share of their wallet early on, which translates into increased spending over time, thereby driving future revenue growth for the company.
- Reasonable Valuation: Despite ongoing macro risks related to credit quality and competitive threats, American Express's current P/E ratio of 19.3 is 20% cheaper than at the start of 2026, presenting a reasonable entry point for investors and highlighting its value as a high-quality business.
See More
