Stock Price & Analysis

Based on the recent data and market analysis, here is a concise assessment of AXP stock:

Technical Analysis

• Current price: $295.40 (as of Feb 21, 2025 close)
• Stock has declined -2.78% in the last session and fallen 3 days in a row
• Trading below both short-term and long-term moving averages, indicating bearish momentum
• RSI at 34.20 suggests oversold conditions but not extreme

Fundamental Factors

• Strong Q4 2024 results with revenue up 9% to $65.9 billion and EPS up 25% to $14.01
• Record 13 million new card acquisitions in 2024, with 70% being fee-paying products
• Gen Z and millennial spending rose 16% in Q4, showing strong growth in younger demographics
• Credit metrics remain healthy with 2% write-off rate, below pre-pandemic levels

Key Risks

• Trading at 20.2x earnings, above its 5-year median of 16.31x
• Rising consumer credit card debt ($1.13 trillion) and increasing delinquency rates
• Bank of America CEO noted consumer spending growth has slowed from 10% to 3-4%
• Recent stock performance (+62% since October) may limit near-term upside

Recommendation: SELL

The combination of technical weakness, premium valuation, and emerging consumer credit risks suggests taking profits at current levels. While AXP remains a strong company with solid fundamentals, the risk-reward ratio appears unfavorable in the short term.

Based on the provided data and recent analyst reports, here's a price prediction analysis for American Express (AXP) stock in 2025:

Technical Analysis

The stock is currently showing bearish signals with:

• RSI at 34.20 indicating oversold conditions
• MACD at -1.27 with negative divergence (-2.31)
• Price trading below key moving averages (SMA 5: 306.61, SMA 10: 308.36)

Fundamental Drivers

According to recent analyst reports:

• Q4 2024 earnings beat expectations with EPS of $3.03 vs $2.62 YoY
• Revenue growth projected at 8% for 2025
• Strong fee income growth outpacing overall revenue
• Benefiting from moderating inflation and potential interest rate cuts

Price Target Analysis

Wall Street analysts project:

• Consensus price target: $325-340 range
• JPMorgan: $307
• UBS: $320
• Truist Securities: $350
• Wells Fargo: $340

2025 Price Prediction

Based on technical signals, fundamental outlook and analyst consensus:

Base Case ($330): 60% probability

• Continued revenue growth of 8%
• Successful fee strategy execution
• Stable credit quality

Bull Case ($360): 25% probability

• Better than expected consumer spending
• Lower interest rates boosting banking profits
• Market multiple expansion

Bear Case ($280): 15% probability

• Economic slowdown impacting spending
• Credit quality deterioration
• Multiple compression

The most likely scenario points to AXP reaching $330 by end of 2025, representing ~12% upside from current levels, driven by steady revenue growth, strong fee income, and benefits from lower rates.

The S1 support level for AXP Stock is $292.5 ,The R1 resistant level for AXP Stock is $310.96.

As of the end of day on 2025-02-27, the price of AXP Stock was $294.42.

The target price for AXP Stock according to analyst rating is 326.60, with the highest price target at 371.00 and the lowest at 270.00. Analysts have a Moderate Buy rating on AXP Stock overall.

The market cap of AXP is $206.7B.

Based on the provided data and recent market activity, here's a comprehensive analysis of whether AXP is overvalued:

Technical Analysis

Valuation Assessment AXP currently trades at a P/E ratio of 16.71x (Q4 2023), which is below its historical average and peers in the financial services sector. The stock's EV/EBITDA of 11.17x also suggests reasonable valuation compared to historical levels.

Growth & Profitability The company demonstrated strong financial performance with revenue growing 24.4% YoY to $48.1B in 2023, while net income increased 11.5% to $8.25B. The ROE remains robust at 31.28%, indicating efficient capital utilization.

Market Position AXP has strengthened its competitive position by adding 13 million new card acquisitions in 2024, with 70% being fee-paying products. The company's focus on affluent customers and strong Gen Z/millennial growth (16% spending increase) provides sustainable growth potential.

Conclusion At the current price of $295.40, AXP is not overvalued considering its strong fundamentals, robust growth metrics, and strategic market positioning. The stock trades at reasonable multiples relative to its growth rate and industry peers.

American Express Company is a globally integrated payments company. The Company provides its customers with access to products, insights, and experiences that build business. It provides credit and charge cards to consumers, small businesses, mid-sized companies, and corporations. It operates under four segments: U.S. Consumer Services (USCS), Commercial Services (CS), International Card Services (ICS), and Global Merchant and Network Services (GMNS). USCS offers travel and lifestyle services as well as banking and non-card financing products. CS offers payment and expense management, banking, and non-card financing products. CS also issues corporate cards and provides services to select global corporate clients. ICS also provides services to international customers, including travel and lifestyle services, and manages certain international joint ventures and its loyalty coalition businesses. GMNS provides multi-channel marketing programs and capabilities, services, and data analytics.

Based on the available data and analyst projections, American Express (AXP) stock is projected to reach $450-500 by 2030, representing a 50-70% upside from current levels around $295. This forecast is supported by management's target of 10%+ annual revenue growth, strong millennial and Gen-Z customer acquisition trends, and the company's premium brand positioning in the payments industry. The expansion of international merchant acceptance and continued growth in card membership should drive sustained earnings growth over the long term.

AXP has a total of 74600 employees.