Why American Express (AXP) is a Top Stock for the Long-Term
If you're a beginner investor, the idea of creating a portfolio from the ground up can feel like an impossible goal to achieve. That's why you should start by looking at stocks that are set to beat the market over the next 12 months, a strategy that's been proven to generate strong returns.
Let's now take a look at one standout stock that could be a perfect fit for your portfolio.
Why You Should Pay Attention to American Express (AXP)
Founded in 1850, NY-based American Express Company is a diversified financial services company, offering charge and credit payment card products, and travel-related services worldwide. AmEx earns revenue through both transaction fees and interest income, supported by a closed-loop payment network. Unlike open-loop peers (e.g., Visa or Mastercard), its integrated system allows AmEx to engage directly with both merchants and cardholders. This setup enables deeper customer insights, targeted marketing, and strong customer loyalty.
Since being added to the Zacks Focus List on December 23, 2021 at $162.47 per share, shares of AXP have increased 101.96% to $328.13.
For fiscal 2025, three analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.03 to $15.21. AXP boasts an average earnings surprise of 5.2%.
Additionally, American Express' earnings are expected to grow 13.9% for the current fiscal year.
Because stock prices react to revisions, buying stocks with rising earnings estimates can be very profitable. Focus List stocks like AXP offer investors a great opportunity to get into a company whose future earnings estimates will be raised, potentially leading to price momentum.
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American Express Company (AXP) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
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