Analyst Blog Stock Updates from Zacks
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 days ago
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: 301.450
Low
280.00
Averages
379.06
High
425.00
Current: 301.450
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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- Banking System Fragility: Buffett's first public comments since stepping back highlight ongoing fragility in the banking system, emphasizing the interconnectedness of financial institutions, where troubles in one can quickly spill over to others, potentially unsettling the market.
- Liquidity Management Pressures: He pointed out that redemption pressures have emerged in private credit markets, particularly in funds exposed to riskier borrowers like software companies, raising concerns about liquidity management in an asset class that expanded rapidly during low interest rates.
- Market Volatility Assessment: Despite recent market volatility, Buffett believes it does not approach the levels that historically created compelling investment opportunities for Berkshire, noting that there have been three instances since he took over where the market dropped more than 50%, indicating current conditions are not alarming.
- Long-Term Investment Strategy: Buffett reiterated Berkshire's long-term investment approach, stating that the firm is not focused on modest gains of 5% or 6%, and revealed he remains actively involved in investment decisions, having made a
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- Corporate Exodus Risk: Concerns about a corporate exodus are heightened as Apollo Global Management considers establishing a second headquarters in a southern state, which could amplify opposition to tax and real estate policies during Mayor Zohran Mamdani's term, potentially impacting the city's economic growth.
- Budget Deficit Challenge: Facing a $5.4 billion budget deficit, Mamdani's administration advocates for taxing the wealthy, but its conflict with Governor Kathy Hochul over tax policies may lead to corporate caution regarding future investments, further affecting New York's business environment.
- Office Market Dynamics: Despite the risk of exodus, JLL reports that leasing volume for high-quality office space in Manhattan reached 8.5 million square feet in Q1 2026, with vacancies dropping by 2.2 percentage points to 13.5%, indicating that companies are still competing for premium office space, driving rents up by 3.5%.
- AI Sector Driving Leasing: Leasing activity from AI companies accounted for half of 2025's total leasing volume in Manhattan, with Nscale Global Holdings' lease at One Vanderbilt setting a record rent of $320 per square foot, reflecting strong demand for premium office space while introducing uncertainty into the market.
See More
Buffett May End Donations to Gates Foundation Over Epstein Ties
- Donation Tensions: Buffett is considering halting his annual multi-billion dollar donations to the Gates Foundation due to Gates' ties to Epstein, indicating a significant impact on the foundation's funding sources and operations.
- Friendship Breakdown: In an interview, Buffett stated he has not spoken to Gates since the Epstein revelations, suggesting their friendship may be over, which could affect the future functioning of the Gates Foundation.
- Uncertain Donation Commitment: Buffett mentioned he will “wait and see what unfolds” regarding his donations, leaving the foundation's financial future uncertain and potentially jeopardizing its charitable initiatives.
- Concerns for the Future: Buffett expressed worries about the Gates Foundation's future, emphasizing the need for clarity on the situation, which may lead to increased scrutiny and regulation of charitable organizations.
See More
Buffett's Investment Philosophy and Core Holdings
- Apple's Competitive Edge: Berkshire Hathaway holds a 1.6% stake in Apple, valued at approximately $56.4 billion, representing 18.1% of its portfolio, highlighting Apple's strong competitive advantage in customer loyalty and ecosystem; despite a current P/E ratio of 32, long-term earnings growth and buyback commitments may yield stable returns.
- American Express Market Performance: Berkshire gradually built a 22% stake in American Express between 1991 and 1995, and while the S&P 500 has recently outperformed, American Express is expected to maintain steady profit growth amid economic challenges due to its brand and customer loyalty, with a current P/E ratio of 19 and significant future dividend growth potential.
- Coca-Cola's Steady Returns: Berkshire Hathaway owns 9.3% of Coca-Cola, and since starting its investment in 1988, the total return has been 3,580%, slightly below the S&P 500's 3,700%; however, Coca-Cola's 64 consecutive years of dividend growth provides stable cash flow for Berkshire to support new investments.
- Investor Choices: Although Apple is considered a quality stock, it is not included in the Motley Fool analyst team's list of 10 best stocks, indicating a market focus on other potential high-return stocks, suggesting investors should consider diversifying their portfolios for higher yields.
See More
Buffett's Investment Philosophy and Core Holdings
- Apple Investment: Berkshire Hathaway holds a 1.6% stake in Apple, valued at approximately $56.4 billion, representing 18.1% of its portfolio, reflecting the company's confidence in tech stocks despite Buffett's previous reservations.
- American Express Resilience: Berkshire built its 22% stake in American Express between 1991 and 1995, and despite economic challenges, the company maintains strong customer loyalty and consistent profit growth, expected to continue outperforming the S&P 500.
- Coca-Cola's Dividend King Status: Berkshire holds a 9.3% stake in Coca-Cola, and since investing in 1988, the stock has delivered a total return of 3,580%, which, while below the S&P 500, is supported by consistent dividend growth, making it a cornerstone for long-term investment.
- Strategic Significance of Portfolio: Buffett's investment philosophy emphasizes acquiring high-quality companies, and although he has retired, new CEO Abel indicates no major changes to core investments, suggesting Berkshire will continue to focus on long-term value investing.
See More
American Express Increases Quarterly Dividend by 16%
- Dividend Increase: American Express has raised its quarterly dividend by 16%, bringing the payout to $0.95 per share, reflecting strong cash flow and a payout ratio below 25%, providing ample room for future dividend hikes.
- Strong Earnings Performance: In 2025, the company reported a 10% revenue increase to $72.2 billion, with earnings per share reaching $15.38, a 15% year-over-year growth, demonstrating robust profitability amid resilient consumer spending.
- Share Buyback Program: In 2025, American Express returned $7.6 billion to shareholders, with approximately $5.3 billion allocated for share repurchases, reducing the share count by about 2%, which directly boosts earnings per share and enhances shareholder returns.
- Market Appeal: Despite a 20% decline in share price since the start of 2026, trading around $300 with a price-to-earnings ratio of approximately 17, the stock presents an attractive valuation for long-term investors in a high-quality lending institution.
See More
