Analysis of American Express Stock Performance
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 18 hours ago
0mins
Should l Buy AXP?
Source: Yahoo Finance
- Stock Volatility: American Express (NYSE:AXP) shares have risen 28% over the past year but are down 19% year-to-date, indicating market concerns about its future performance amid increasing economic uncertainty.
- Analyst Rating Adjustment: On March 31, TD Cowen lowered the price target for American Express from $375 to $330 while maintaining a 'Buy' rating, highlighting the impact of AI on the job market and global conflicts contributing to economic uncertainty.
- Fuel Price Impact: With gasoline prices breaching $4 per gallon, analysts believe this negatively affects consumer spending, and Cramer noted the interesting link between American Express's performance and fuel prices, suggesting its poor performance may be related.
- Investment Outlook: While American Express is seen as a potential investment, analysts suggest that certain AI stocks offer greater upside potential and lower downside risk, indicating that investors should carefully consider market dynamics when making choices.
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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: 305.730
Low
280.00
Averages
379.06
High
425.00
Current: 305.730
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.
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- Significant Profit Increase: The company's earnings per share in Q1 grew 19% year-over-year to $2.84, outpacing the 16% revenue growth, highlighting impressive operating leverage, while services revenue reached a record $30 billion with a gross margin twice that of hardware sales, further solidifying the long-term growth outlook.
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- Enhanced Profitability: Earnings per share increased by 19% to $2.84, outpacing revenue growth, demonstrating Apple's impressive operating leverage, which is expected to continue driving shareholder returns in the future.
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- Industry Trend: This increase marks Delta as the third major U.S. carrier to raise fees, following United Airlines and JetBlue Airways, indicating a broader trend in the airline industry facing pressure from soaring fuel expenses, with expectations that other carriers may follow suit.
- Surging Fuel Costs: According to Airlines for America, jet fuel prices in major U.S. cities have reached $4.69 per gallon, an increase of nearly 88% since the U.S. and Israel's attack on Iran on February 28, posing significant challenges to airline operating costs.
- Market Reaction Anticipation: Delta is set to report its first-quarter results before the market opens on Wednesday, and investors are likely to scrutinize how the company plans to manage the surge in fuel costs, with analysts noting that while strong demand may alleviate some pressure, it remains uncertain if airlines can fully offset the rising fuel prices.
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- Stock Volatility: American Express (NYSE:AXP) shares have risen 28% over the past year but are down 19% year-to-date, indicating market concerns about its future performance amid increasing economic uncertainty.
- Analyst Rating Adjustment: On March 31, TD Cowen lowered the price target for American Express from $375 to $330 while maintaining a 'Buy' rating, highlighting the impact of AI on the job market and global conflicts contributing to economic uncertainty.
- Fuel Price Impact: With gasoline prices breaching $4 per gallon, analysts believe this negatively affects consumer spending, and Cramer noted the interesting link between American Express's performance and fuel prices, suggesting its poor performance may be related.
- Investment Outlook: While American Express is seen as a potential investment, analysts suggest that certain AI stocks offer greater upside potential and lower downside risk, indicating that investors should carefully consider market dynamics when making choices.
See More
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- Accelerating Revenue Growth: Apple's fiscal Q1 2026 revenue rose 16% year-over-year to $143.8 billion, with iPhone revenue surging 23%, indicating a strong business rebound, and management expects Q2 revenue to continue growing by 13% to 16% despite supply constraints, showcasing the company's competitive strength in the market.
- Significant Profit Increase: The company's earnings per share in Q1 grew 19% year-over-year to $2.84, outpacing the 16% revenue growth, highlighting impressive operating leverage, while services revenue reached a record $30 billion with a gross margin twice that of hardware sales, further solidifying the long-term growth outlook.
- Indirect AI Beneficiary: Apple doesn't need to dominate model training or cloud infrastructure to benefit from AI; it only needs to become the preferred platform for consumers to use AI, with management noting that many enabled iPhones are actively using Apple Intelligence, and future collaborations with Google on next-gen foundation models could enhance Siri's personalization features.
- Long-Term Investment Appeal: Despite a current P/E ratio of 33, Apple's business is reaccelerating, with earnings growth outpacing revenue, and the potential AI tailwind could drive growth across software, services, and hardware over the next decade, further validated by Buffett's endorsement as Berkshire's largest equity investment.
See More
Apple's Revenue Growth Accelerates Again
- Significant Revenue Growth: Apple's fiscal Q1 2026 revenue rose 16% year-over-year to $143.8 billion, with iPhone revenue surging 23%, indicating strong market demand and product appeal, further solidifying its leadership in the smartphone market.
- Enhanced Profitability: Earnings per share increased by 19% to $2.84, outpacing revenue growth, demonstrating Apple's impressive operating leverage, which is expected to continue driving shareholder returns in the future.
- Robust Services Business: Services revenue reached a record $30 billion in Q1, up 14% year-over-year, with a gross profit margin twice that of hardware sales, highlighting the ongoing growth potential in high-margin business segments and enhancing long-term investment appeal.
- AI Strategic Positioning: Apple is collaborating with Google on next-generation foundational models to enhance user experience, particularly in applications like Siri, indicating the company's strategic thinking in the AI space, which could drive future product innovation.
See More
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- Fee Increase: Delta Air Lines has raised its checked bag fees by $10 starting Wednesday, bringing the first bag fee to $45 and the second to $55, while a third bag will cost $200, reflecting the airline's pricing strategy in response to rising fuel costs.
- Industry Trend: This increase marks Delta as the third major U.S. carrier to raise fees, following United Airlines and JetBlue Airways, indicating a broader trend in the airline industry facing pressure from soaring fuel expenses, with expectations that other carriers may follow suit.
- Surging Fuel Costs: According to Airlines for America, jet fuel prices in major U.S. cities have reached $4.69 per gallon, an increase of nearly 88% since the U.S. and Israel's attack on Iran on February 28, posing significant challenges to airline operating costs.
- Market Reaction Anticipation: Delta is set to report its first-quarter results before the market opens on Wednesday, and investors are likely to scrutinize how the company plans to manage the surge in fuel costs, with analysts noting that while strong demand may alleviate some pressure, it remains uncertain if airlines can fully offset the rising fuel prices.
See More
UBS Lowers Target Price for American Express Co to $340 from $395
- Price Reduction: American Express has cut the target price for its stock from $395 to $340.
- Market Impact: This adjustment reflects changes in market conditions and expectations for the company's performance.
See More
3 Sectors to Invest In During Their Dip and 1 to Avoid
Market Sentiment Shift: The S&P 500 index has seen a significant decline, leading to a shift in investor sentiment from optimism to fear, with some investors identifying opportunities in beaten-down sectors.
Investment Strategies: Analysts suggest that buying stocks at lower prices, such as American Express, may present smarter risk-reward trades compared to purchasing at previous highs, despite the current negative sentiment.
Sector Performance: The financial sector is under pressure due to concerns over private credit and recession fears, while the energy sector has rebounded significantly after being the worst performer in the previous year.
Consumer Behavior and AI Impact: Despite negative headlines, consumer adoption remains strong in sectors like health care and software, with AI being viewed as a tool that enhances existing platforms rather than a threat to their existence.
See More
Analysis of American Express Stock Performance
- Stock Volatility: American Express (NYSE:AXP) shares have risen 28% over the past year but are down 19% year-to-date, indicating market concerns about its future performance amid increasing economic uncertainty.
- Analyst Rating Adjustment: On March 31, TD Cowen lowered the price target for American Express from $375 to $330 while maintaining a 'Buy' rating, highlighting the impact of AI on the job market and global conflicts contributing to economic uncertainty.
- Fuel Price Impact: With gasoline prices breaching $4 per gallon, analysts believe this negatively affects consumer spending, and Cramer noted the interesting link between American Express's performance and fuel prices, suggesting its poor performance may be related.
- Investment Outlook: While American Express is seen as a potential investment, analysts suggest that certain AI stocks offer greater upside potential and lower downside risk, indicating that investors should carefully consider market dynamics when making choices.
See More
