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It's the Greg Abel era at Berkshire Hathaway (BRKA -0.48%)(BRKB -0.41%), but it doesn't look too different than the Warren Buffett era. In fact, the most significant change started happening under Buffett's watch. That's the addition of Alphabet (GOOG -1.05%)(GOOGL -1.11%) to the portfolio, and Buffett claimed responsibility for the expansion of the position, which happened after he stepped down as CEO.

Alphabet now represents 9.9% of the total portfolio, the third-largest position. Apple (AAPL -2.51%) remains the largest position, accounting for 20.2%, and American Express (AXP -1.11%) is second at 13.7%. Coca-Cola (KO -0.83%) is down to fourth place, just behind Alphabet with 9.8%. Together, these four stocks make up 53.6% of Berkshire Hathaway's equity portfolio.

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1. Apple Apple has been the largest position in the portfolio for years, and it grew to more than half of the total before management began selling it off at the end of 2023. Rather than signaling disappointment with the stock, which is still by far its biggest bet, it seems to have lowered its concentration risk.

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Apple is everything Buffett always talks about. That starts with excellent management, and Tim Cook shepherded it to become the most valuable company in the world on his watch. John Ternus took over as CEO on Sept. 1, and he has honed his skills as an Apple veteran. It has a strong economic moat in its interconnected ecosystem of products people love. Customers who adopt the ecosystem typically purchase several Apple-branded products that work together and frequently upgrade to new models.

The iPhone continues to see incredible demand, and three of its models -- the iPhone 17, the iPhone 17 Pro Max, and the iPhone 17 Pro -- are the three best-selling smartphones in the world, according to Counterpoint Research. The iPhone 17 itself accounts for 6% of the global market. That's a lead that's hard to compete with.

The company is also highly profitable, and perhaps most importantly for Buffett, it plays a large role in the economy as a consumer goods giant. Finally, it pays a dividend, and even though it yields only 0.3%, it demonstrates its commitment to its shareholders.

2. American Express Buffett has praised American Express for its global, travel-friendly brand, and it's the classic Buffett stock in many ways. Like Apple, it plays a major role in the economy, and as a financial company, it helps drive economic activity.

However, it has a unique, differentiated model that sets it apart as an excellent business. It has a closed-loop credit card network, which means that it funds its own loans. It also has a stand-alone bank, and instead of forging partnerships with issuing banks, it handles everything in-house. That brings lots of cash into its system and allows the company to carefully curate its customer base and rewards program.

Image source: American Express.

It also focuses on an affluent clientele that is more resilient under pressure and willing to pay annual fees for the privilege of using an Amex card and receiving the coveted rewards. The fees provide a recurring revenue source and go straight to the bottom line. Card fees increased 15% year over year in the 2026 second quarter, while total revenue increased 10%.

American Express' dividend yields 1.1% at the current price, and it has years of growth ahead as it powers the high-income U.S. consumer.

3. Alphabet Alphabet is a recent Berkshire Hathaway buy and the portfolio's only real artificial intelligence (AI) stock. It's unlikely that Buffett and Abel bought it for AI, though. It's also a global tech giant because it holds dominant positions across many areas, starting with Search, where it has about 90% of the market, according to Statista.

YouTube and Android are two other dominant businesses, and of course, the AI business is skyrocketing. Google Cloud sales increased 82% year over year in the second quarter, and it has a $514 billion backlog that continues to grow.

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Although Alphabet seems like a departure from the typical Buffett stock with its tech and AI focus, its leading position in several important businesses is consistent with what Buffett loves in great companies. In many ways, it's just getting started, and it has robust long-term opportunities.

4. Coca-Cola Last but not least, Coca-Cola is Berkshire Hathaway's longest-held position. It was the stock Buffett was talking about when he said his favorite holding period is forever, and it continues to create value for the company.

Coca-Cola is a Dividend King, or a company that has raised its dividend for 50 years or more, with one of the longest track records on the market; this year was the 64th consecutive year that it raised its dividend. Berkshire Hathaway is scheduled to receive $848 million in dividends from Coca-Cola stock in 2026 alone, which implies a yield of 65% on the cost basis of the original position, which was $1.3 billion. That increases every year along with the dividend.

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Like the other stocks on the list, Buffett loves Coca-Cola's leading position and its role as a beverage that loyal fans love in all conditions; it's unlikely to be replaced by new tech. The stock is trouncing the market this year, up 26% year to date as investors appreciate its strong performance despite inflation, and it should continue to reward shareholders for the foreseeable future.

First Eagle Investment Management LLC raised its holdings in American Express Company (NYSE:AXP – Free Report) by 1.1% during the second quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 1,680,147 shares of the payment services company’s stock after buying an additional 17,519 shares during the period. First Eagle Investment Management LLC owned about 0.25% of American Express worth $568,310,000 as of its most recent SEC filing.

Several other institutional investors and hedge funds have also made changes to their positions in AXP. Dover Advisors LLC boosted its holdings in American Express by 0.4% in the fourth quarter. Dover Advisors LLC now owns 7,977 shares of the payment services company’s stock valued at $2,951,000 after purchasing an additional 29 shares in the last quarter. Invenio Wealth Partners LLC lifted its holdings in shares of American Express by 3.9% in the 3rd quarter. Invenio Wealth Partners LLC now owns 776 shares of the payment services company’s stock valued at $258,000 after purchasing an additional 29 shares during the last quarter. Strait & Sound Wealth Management LLC lifted its stake in American Express by 2.7% in the fourth quarter. Strait & Sound Wealth Management LLC now owns 1,137 shares of the payment services company’s stock valued at $421,000 after buying an additional 30 shares during the last quarter. Onyx Bridge Wealth Group LLC raised its position in American Express by 3.6% in the 1st quarter. Onyx Bridge Wealth Group LLC now owns 869 shares of the payment services company’s stock valued at $263,000 after purchasing an additional 30 shares during the last quarter. Finally, IMG Wealth Management Inc. raised its holdings in shares of American Express by 6.3% in the fourth quarter. IMG Wealth Management Inc. now owns 541 shares of the payment services company’s stock valued at $200,000 after buying an additional 32 shares during the last quarter. 84.33% of the stock is owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades Several research firms have recently commented on AXP. Evercore set a $370.00 price target on American Express in a research note on Monday, July 27th. Benchmark initiated coverage on shares of American Express in a research report on Monday, July 13th. They set a “buy” rating for the company. Loop Capital began coverage on shares of American Express in a research report on Thursday, May 21st. They issued a “buy” rating and a $389.00 price objective on the stock. JPMorgan Chase & Co. raised American Express from a “neutral” rating to an “overweight” rating and upped their target price for the company from $328.00 to $400.00 in a research note on Monday, July 13th. Finally, Jefferies Financial Group raised shares of American Express from a “hold” rating to a “buy” rating in a research note on Monday, July 13th. One research analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, ten have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $373.32.

Get Our Latest Research Report on American Express American Express Price Performance Shares of American Express stock opened at $326.11 on Monday. The stock has a market capitalization of $220.23 billion, a P/E ratio of 19.79, a PEG ratio of 1.39 and a beta of 1.05. American Express Company has a twelve month low of $290.97 and a twelve month high of $387.49. The company has a current ratio of 1.55, a quick ratio of 1.54 and a debt-to-equity ratio of 1.66. The business’s fifty day moving average price is $341.66 and its 200 day moving average price is $325.28.

American Express (NYSE:AXP – Get Free Report) last issued its earnings results on Friday, July 24th. The payment services company reported $4.53 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $4.41 by $0.12. American Express had a return on equity of 34.12% and a net margin of 15.07%.The business had revenue of $19.64 billion during the quarter, compared to analysts’ expectations of $19.70 billion. During the same quarter in the previous year, the business earned $4.08 EPS. The company’s revenue for the quarter was up 10.0% on a year-over-year basis. American Express has set its FY 2026 guidance at 17.300-17.900 EPS. As a group, research analysts anticipate that American Express Company will post 17.68 earnings per share for the current year.

(Free Report)

American Express is a global financial services company primarily known for its payment card products, travel services and merchant network. Founded in 1850 as an express mail business, the company evolved through the 20th century into a payments and travel-focused organization. Its core activities include issuing consumer and commercial charge and credit cards, operating a global card acceptance and processing network, and providing travel-related services and customer loyalty programs.

American Express issues a range of products for individuals, small businesses and large corporations, including personal cards, business and corporate cards, and co‑brand partnerships with airlines, hotels and retailers.

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Visa (V -0.97%) and American Express (AXP -1.11%) are two of the most well-known financial companies that enable countless transactions each day. Although they operate in the same industry, there are subtle differences between the two that are important for investors to know. If you could only invest in Visa or American Express, these are the factors to consider.

Image source: Getty Images.

Visa will always have higher net profit margins Visa wrapped up its fiscal 2026 third quarter with a 48.4% net profit margin, while American Express reported a 16.8% net profit margin. American Express is unlikely to close that gap because the companies have some differences in their business models.

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While many people use Visa and American Express credit cards, these companies make most of their revenue through their payment networks. They earn a small percentage of each transaction they process.

The difference emerges when looking beyond payment networks. Visa is a pure play in the industry. It does not collect interest on credit card debt, and if a consumer defaults on their card, that debt does not affect Visa's financials.

American Express operates as a lender. It makes money from interest but also loses money when consumers default on their balances. The lending model American Express uses results in higher operating expenses.

Analyzing the valuation gap It makes sense for Visa to trade at a richer valuation than American Express, since the former enjoys higher profit margins. However, the gap has become quite sizable. American Express trades at a 20 price-to-earnings (P/E) ratio compared to Visa's 32 P/E ratio.

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That gap seems excessive when considering that both companies are achieving similar growth rates. Visa posted 14% year-over-year revenue growth in its fiscal 2026 Q3, while American Express delivered a 10% growth rate. American Express' net income had a higher growth rate, although a 1% edge isn't much.

American Express has the edge when it comes to long-term growth. Its five-year compound annual growth rate (CAGR) is 16.1%, while Visa has maintained a 12.9% revenue CAGR over that stretch.

Both companies are achieving very similar revenue and net income growth rates. Even though Visa has higher net profit margins, both companies are moving at a similar pace. This detail suggests that Visa may not deserve to trade at a high premium over American Express. While Visa shouldn't drop down to a 20 P/E ratio, American Express' valuation may have more room to run.

Granted, American Express won't reach the same valuation as Visa due to credit risk.

American Express is winning over Gen Z Both companies are well positioned for the future, but American Express may be making more progress with younger generations. It has become Gen Z's favorite credit card, and the company is now aiming to become that generation's favorite bank.

Visa is also doing well with this consumer base, but American Express touts it in quarterly press releases. American Express CEO Stephen J. Squeri said that the company has "continued to attract a large number of new customers, particularly Millennials and Gen-Zs who represent greater lifetime value."

Becoming the go-to choice among younger generations can help American Express maintain solid revenue growth for additional decades. Visa still has the larger network. It has more than five billion cards out in the wild, while American Express only has 155.9 million cards in force. Both fintech companies grew their total cards by 8% year over year.

American Express has a larger untapped market than Visa. The former's focus on high-end consumers ensures that it won't completely close the gap, but Visa is likely to report decelerating growth rates first just due to how many people already use Visa cards.

Both companies are foundational pieces of consumerism, but American Express looks like the better pick. It's no surprise that American Express has a lower valuation, but the gap may be a bit excessive.

American Express maintains a Buy rating, driven by resilient premium card growth, robust credit quality, and strong capital returns. Fee-based card adoption remains high, with 70% of new accounts on annual-fee products and card fee revenue growing double digits for 32 consecutive quarters. AXP's customer base is getting younger, fueling embedded growth as Millennials and Gen Z now account for 65% of new U.S. consumer accounts.

In the latest trading session, American Express (AXP - Free Report) closed at $324.19, marking a -1.81% move from the previous day. This move lagged the S&P 500's daily loss of 0.71%. On the other hand, the Dow registered a loss of 0.79%, and the technology-centric Nasdaq decreased by 1.03%.

Coming into today, shares of the credit card issuer and global payments company had lost 4.22% in the past month. In that same time, the Finance sector gained 0.84%, while the S&P 500 gained 2.72%.

Market participants will be closely following the financial results of American Express in its upcoming release. The company plans to announce its earnings on October 23, 2026. The company is predicted to post an EPS of $4.58, indicating a 10.63% growth compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $20.09 billion, up 9.05% from the prior-year quarter.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $17.68 per share and a revenue of $79.46 billion, representing changes of +14.95% and +10.02%, respectively, from the prior year.

Any recent changes to analyst estimates for American Express should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.1% higher. American Express is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that American Express has a Forward P/E ratio of 18.67 right now. This expresses a premium compared to the average Forward P/E of 11.43 of its industry.

One should further note that AXP currently holds a PEG ratio of 1.4. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Financial - Miscellaneous Services industry had an average PEG ratio of 0.91.

The Financial - Miscellaneous Services industry is part of the Finance sector. This industry, currently bearing a Zacks Industry Rank of 151, finds itself in the bottom 39% echelons of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow AXP in the coming trading sessions, be sure to utilize Zacks.com.

Ancora Advisors LLC purchased a new position in shares of American Express Company (NYSE:AXP – Free Report) in the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm purchased 1,643 shares of the payment services company’s stock, valued at approximately $556,000.

A number of other institutional investors have also recently added to or reduced their stakes in AXP. Total Clarity Wealth Management Inc. increased its position in shares of American Express by 3.4% during the fourth quarter. Total Clarity Wealth Management Inc. now owns 874 shares of the payment services company’s stock valued at $323,000 after purchasing an additional 29 shares during the period. Dover Advisors LLC lifted its position in American Express by 0.4% in the fourth quarter. Dover Advisors LLC now owns 7,977 shares of the payment services company’s stock worth $2,951,000 after purchasing an additional 29 shares during the period. Invenio Wealth Partners LLC boosted its stake in American Express by 3.9% during the third quarter. Invenio Wealth Partners LLC now owns 776 shares of the payment services company’s stock worth $258,000 after buying an additional 29 shares in the last quarter. Strait & Sound Wealth Management LLC boosted its stake in American Express by 2.7% during the fourth quarter. Strait & Sound Wealth Management LLC now owns 1,137 shares of the payment services company’s stock worth $421,000 after buying an additional 30 shares in the last quarter. Finally, Onyx Bridge Wealth Group LLC raised its stake in shares of American Express by 3.6% in the 1st quarter. Onyx Bridge Wealth Group LLC now owns 869 shares of the payment services company’s stock valued at $263,000 after buying an additional 30 shares in the last quarter. 84.33% of the stock is currently owned by institutional investors and hedge funds.

American Express Stock Down 0.2% Shares of AXP opened at $333.64 on Friday. The company has a current ratio of 1.55, a quick ratio of 1.54 and a debt-to-equity ratio of 1.66. American Express Company has a 12 month low of $290.97 and a 12 month high of $387.49. The firm’s 50 day moving average is $342.85 and its 200-day moving average is $326.18. The stock has a market capitalization of $225.31 billion, a PE ratio of 20.25, a P/E/G ratio of 1.35 and a beta of 1.04.

American Express (NYSE:AXP – Get Free Report) last released its quarterly earnings results on Friday, July 24th. The payment services company reported $4.53 EPS for the quarter, beating analysts’ consensus estimates of $4.41 by $0.12. American Express had a return on equity of 34.12% and a net margin of 15.07%.The firm had revenue of $19.64 billion for the quarter, compared to analyst estimates of $19.70 billion. During the same quarter in the previous year, the company posted $4.08 EPS. The business’s revenue was up 10.0% on a year-over-year basis. American Express has set its FY 2026 guidance at 17.300-17.900 EPS. Equities research analysts forecast that American Express Company will post 17.67 EPS for the current year. American Express Dividend Announcement The business also recently disclosed a quarterly dividend, which was paid on Monday, August 10th. Investors of record on Thursday, July 2nd were issued a dividend of $0.95 per share. The ex-dividend date of this dividend was Thursday, July 2nd. This represents a $3.80 dividend on an annualized basis and a yield of 1.1%. American Express’s dividend payout ratio is 23.06%.

Wall Street Analyst Weigh In AXP has been the topic of several analyst reports. TD Cowen upped their target price on shares of American Express from $330.00 to $338.00 and gave the stock a “hold” rating in a report on Tuesday, July 7th. Loop Capital assumed coverage on American Express in a report on Thursday, May 21st. They set a “buy” rating and a $389.00 price target for the company. Benchmark initiated coverage on American Express in a research report on Monday, July 13th. They issued a “buy” rating for the company. Weiss Ratings reiterated a “hold (c+)” rating on shares of American Express in a research report on Monday, July 13th. Finally, Evercore set a $370.00 price objective on shares of American Express in a report on Monday, July 27th. One equities research analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, ten have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average price target of $373.32.

Get Our Latest Stock Analysis on AXP

(Free Report)

American Express is a global financial services company primarily known for its payment card products, travel services and merchant network. Founded in 1850 as an express mail business, the company evolved through the 20th century into a payments and travel-focused organization. Its core activities include issuing consumer and commercial charge and credit cards, operating a global card acceptance and processing network, and providing travel-related services and customer loyalty programs.

American Express issues a range of products for individuals, small businesses and large corporations, including personal cards, business and corporate cards, and co‑brand partnerships with airlines, hotels and retailers.

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Bamco Inc. NY purchased a new position in shares of American Express Company (NYSE:AXP) in the 2nd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor purchased 2,700 shares of the payment services company’s stock, valued at approximately $913,000.

Other institutional investors also recently bought and sold shares of the company. Total Clarity Wealth Management Inc. boosted its holdings in American Express by 3.4% in the 4th quarter. Total Clarity Wealth Management Inc. now owns 874 shares of the payment services company’s stock valued at $323,000 after purchasing an additional 29 shares in the last quarter. Dover Advisors LLC boosted its stake in shares of American Express by 0.4% in the fourth quarter. Dover Advisors LLC now owns 7,977 shares of the payment services company’s stock valued at $2,951,000 after buying an additional 29 shares in the last quarter. Invenio Wealth Partners LLC grew its holdings in American Express by 3.9% during the third quarter. Invenio Wealth Partners LLC now owns 776 shares of the payment services company’s stock worth $258,000 after acquiring an additional 29 shares during the period. Strait & Sound Wealth Management LLC raised its position in American Express by 2.7% in the fourth quarter. Strait & Sound Wealth Management LLC now owns 1,137 shares of the payment services company’s stock worth $421,000 after acquiring an additional 30 shares in the last quarter. Finally, Onyx Bridge Wealth Group LLC lifted its holdings in American Express by 3.6% in the first quarter. Onyx Bridge Wealth Group LLC now owns 869 shares of the payment services company’s stock valued at $263,000 after acquiring an additional 30 shares during the period. 84.33% of the stock is owned by institutional investors and hedge funds.

Analyst Ratings Changes AXP has been the topic of a number of recent analyst reports. TD Cowen upped their price target on shares of American Express from $330.00 to $338.00 and gave the stock a “hold” rating in a research note on Tuesday, July 7th. Morgan Stanley lowered their target price on shares of American Express from $385.00 to $382.00 and set an “equal weight” rating on the stock in a research report on Monday, July 27th. BTIG Research dropped their target price on shares of American Express from $324.00 to $315.00 and set a “sell” rating for the company in a report on Monday, July 27th. JPMorgan Chase & Co. upgraded shares of American Express from a “neutral” rating to an “overweight” rating and lifted their price target for the company from $328.00 to $400.00 in a research report on Monday, July 13th. Finally, Evercore set a $370.00 price target on American Express in a research note on Monday, July 27th. One investment analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating, ten have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus price target of $373.32.

View Our Latest Analysis on American Express American Express Price Performance Shares of NYSE AXP opened at $334.03 on Friday. The company has a current ratio of 1.55, a quick ratio of 1.54 and a debt-to-equity ratio of 1.66. The company’s 50-day moving average price is $342.96 and its 200 day moving average price is $326.13. American Express Company has a 52 week low of $290.97 and a 52 week high of $387.49. The stock has a market cap of $225.57 billion, a price-to-earnings ratio of 20.27, a PEG ratio of 1.36 and a beta of 1.04.

American Express (NYSE:AXP – Get Free Report) last issued its quarterly earnings data on Friday, July 24th. The payment services company reported $4.53 earnings per share for the quarter, topping analysts’ consensus estimates of $4.41 by $0.12. The business had revenue of $19.64 billion during the quarter, compared to analysts’ expectations of $19.70 billion. American Express had a net margin of 15.07% and a return on equity of 34.12%. The company’s revenue was up 10.0% on a year-over-year basis. During the same period last year, the company posted $4.08 EPS. American Express has set its FY 2026 guidance at 17.300-17.900 EPS. As a group, research analysts forecast that American Express Company will post 17.67 earnings per share for the current fiscal year.

American Express Announces Dividend The business also recently disclosed a quarterly dividend, which was paid on Monday, August 10th. Investors of record on Thursday, July 2nd were paid a dividend of $0.95 per share. The ex-dividend date of this dividend was Thursday, July 2nd. This represents a $3.80 dividend on an annualized basis and a dividend yield of 1.1%. American Express’s dividend payout ratio (DPR) is presently 23.06%.

(Free Report)

American Express is a global financial services company primarily known for its payment card products, travel services and merchant network. Founded in 1850 as an express mail business, the company evolved through the 20th century into a payments and travel-focused organization. Its core activities include issuing consumer and commercial charge and credit cards, operating a global card acceptance and processing network, and providing travel-related services and customer loyalty programs.

American Express issues a range of products for individuals, small businesses and large corporations, including personal cards, business and corporate cards, and co‑brand partnerships with airlines, hotels and retailers.

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Here at Zacks, we offer our members many different opportunities to take full advantage of the stock market, as well as how to invest in ways that lead to long-term success.

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Since stock prices respond to revisions, it can be very profitable to buy stocks with rising earnings estimates. By buying Focus List stocks, then, you're likely getting into companies whose future earnings estimates will be raised, potentially leading to price momentum.

Focus List Spotlight: American Express (AXP - Free Report) 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.

AXP, a #3 (Hold) stock, was added to the Focus List on December 23, 2021 at $162.47 per share. Since then, shares have increased 106.81% to $336.

For fiscal 2026, four analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.03 to $17.67. AXP boasts an average earnings surprise of 3.3%.

Earnings for AXP are forecasted to see growth of 14.9% for the current fiscal year as well.

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On August 24, 2026, we delve into the DCF analysis for American Express Co
AXP +1.46% 84

, a company that has experienced a mixed price performance recently. Over the past year, AXP has seen a +10.2% increase, but year-to-date, it is down by -8.4%. This backdrop sets the stage for a closer examination of its valuation.

DCF Earnings-based intrinsic value of $320.04 vs current price of $336.00 (margin of safety: -5.0%) DCF Free Cash Flow-based intrinsic value of $377.37 (second opinion) GF Score™ of 84/100, indicating a strong reliability of the DCF inputs What Is AXP Worth? DCF Earnings-Based Model The DCF earnings-based model for American Express Co
AXP +1.46% 84

employs a two-stage approach to estimate intrinsic value. The first stage reflects a growth phase where earnings per share (EPS) is projected to grow at 12.8% annually for the next ten years. The second stage assumes a terminal growth rate of 4% for the following ten years. The discount rate applied is 11%, derived from the risk-free rate and equity risk premium.

Parameter Value Current EPS (TTM, excl. non-recurring) $16.59 10-Year Growth Rate 12.8% 10-Year Treasury Rate 4.71% Discount Rate (ceil(Treasury) + 6%) 11% Terminal Growth Rate 4% In the growth stage, the calculated value is $181.46 per share, while the terminal stage value comes to $138.58 per share. Adding these two components gives us an intrinsic value of $320.04.

Stage Description Value Growth Stage (Years 1-10) EPS growing at 12.8%, discounted at 11% $181.46 Terminal Stage (Years 11-20) 4% terminal growth, discounted at 11% $138.58 Intrinsic Value Growth + Terminal $320.04 With the current price at $336.00, the stock appears to be fairly valued, presenting a margin of safety of -5.0%. It is important to note that GuruFocus utilizes EPS figures that exclude non-recurring items, as research indicates that stock prices are more closely correlated with earnings than with free cash flow. For a detailed calculation, visit the AXP DCF Calculator.

What Does the Free Cash Flow DCF Say? The free cash flow (FCF)-based intrinsic value for AXP is calculated at $377.37, indicating a modestly undervalued status with an 11.0% margin of safety. This contrasts with the earnings-based model, which suggests a fair valuation. The divergence between the two models highlights the need for careful consideration of which valuation approach might be more reliable given the current market conditions.

How Does GF Value™ Compare to the DCF Models? The GF Value™ for American Express Co is calculated at $340.57, providing yet another perspective on valuation. This proprietary measure from GuruFocus is derived from historical trading multiples, past business growth, and future performance estimates. The GF Value™ aligns closely with the FCF-based intrinsic value, suggesting a more favorable outlook compared to the earnings-based DCF model. For further insights, check the GF Value™ page.

What Does AXP's GF Score™ Tell Us? The GF Score™ evaluates a stock's overall quality based on various factors, including financial strength, profitability, growth, and valuation metrics. AXP's score of 84/100 indicates a strong position, although its predictability rank is low at 1/5 stars. This low predictability suggests that the DCF model may be less reliable for AXP, emphasizing the importance of qualitative factors in the investment decision-making process.

Metric Rating GF Score™ 84/100 Financial Strength 3/10 Profitability 7/10 Growth 9/10 Valuation 9/10 Momentum 8/10

Key Assumptions and Limitations It is crucial to recognize that DCF models are highly sensitive to the assumptions made regarding growth rates and discount rates. Stocks that are rated with low predictability tend to yield less reliable DCF estimates. The terminal growth rate of 4% is a simplifying assumption that may not fully capture future market dynamics.

What This Means for Investors In synthesizing the three valuation perspectives—DCF earnings, DCF FCF, and GF Value™—we find a notable tension between the earnings-based DCF and the FCF-based valuation. While the earnings DCF suggests AXP is fairly valued, the FCF model indicates it is modestly undervalued, and the GF Value™ supports a higher valuation. Additionally, the guru ownership signal shows that 24 gurus currently hold AXP stock, with 8 adding and 12 trimming their positions, while insiders have sold $110.5M worth of shares over the past year. This mixed sentiment from both gurus and insiders underscores the need for caution. For a comprehensive analysis, explore the AXP DCF Calculator.

Frequently Asked Questions What is AXP's intrinsic value based on DCF?

Answer: earnings-based $320.04, FCF-based $377.37

Is AXP overvalued or undervalued?

Answer: The earnings DCF suggests fair valuation, while the FCF model indicates modest undervaluation.

How reliable is the DCF model for AXP?

Answer: The predictability rank is 1/5, indicating lower reliability for the DCF model.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

Investors with an interest in Financial - Miscellaneous Services stocks have likely encountered both Intercorp Financial Services Inc. (IFS - Free Report) and American Express (AXP - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.

Intercorp Financial Services Inc. and American Express are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. Investors should feel comfortable knowing that IFS likely has seen a stronger improvement to its earnings outlook than AXP has recently. But this is just one piece of the puzzle for value investors.

Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.

Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.

IFS currently has a forward P/E ratio of 8.99, while AXP has a forward P/E of 18.74. We also note that IFS has a PEG ratio of 0.71. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. AXP currently has a PEG ratio of 1.34.

Another notable valuation metric for IFS is its P/B ratio of 1.58. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, AXP has a P/B of 6.52.

These are just a few of the metrics contributing to IFS's Value grade of A and AXP's Value grade of C.

IFS is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that IFS is likely the superior value option right now.

Allworth Financial LP purchased a new position in shares of American Express Company (NYSE:AXP) in the second quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The fund purchased 142,143 shares of the payment services company’s stock, valued at approximately $48,080,000.

Several other institutional investors and hedge funds also recently modified their holdings of AXP. Greenspring Advisors LLC acquired a new position in shares of American Express during the second quarter valued at approximately $506,000. B. Metzler seel. Sohn & Co. AG acquired a new stake in American Express in the second quarter worth approximately $25,040,000. TrinityBridge Ltd bought a new position in American Express during the 2nd quarter valued at $271,000. AlpenGlobal Capital LLC bought a new position in American Express during the 2nd quarter valued at $7,479,000. Finally, Silvant Capital Management LLC acquired a new position in shares of American Express during the 2nd quarter valued at $9,491,000. Institutional investors own 84.33% of the company’s stock.

American Express News Roundup Here are the key news stories impacting American Express this week:

Positive Sentiment: American Express expanded its virtual-card capabilities for U.S. commercial customers through its @ Work platform and Conferma. The initiative could strengthen AXP’s position in corporate payments by improving security, spending controls, and integration with business and travel workflows. Is American Express’ Expanded Virtual Cards Strategy Deepening Its Corporate Moat in Premium Payments? Positive Sentiment: AXP became the official payments partner of St Andrews Links, expanding its premium sports and lifestyle partnership portfolio. The agreement may support international brand awareness, card-member engagement, and premium-card acquisition, although the near-term financial impact is likely limited. American Express and St Andrews Links Trust Announce Partnership Positive Sentiment: A recent profile highlighted CEO Steve Squeri’s strategy of attracting younger customers with premium products such as the Platinum Card. The company’s success with millennials and Gen Z supports the long-term value of its premium-card model. The American Express CEO Defied Haters Neutral Sentiment: Analyst opinions on American Express are mixed, indicating limited consensus on the stock’s valuation and outlook. Management is scheduled to participate in the Barclays Global Financial Services Conference on September 16, which could provide additional commentary on spending trends, credit quality, and guidance. Analysts’ Opinions Are Mixed on American Express American Express to Participate in Barclays Global Financial Services Conference Negative Sentiment: A 2026 Long Angle survey of more than 9,000 high-net-worth individuals found that Amex and Chase lagged other providers in loyalty, while Fidelity and Schwab ranked better in banking-related categories. The findings raise concerns about customer retention and competitive pressure in an important premium segment. Long Angle High-Net-Worth Study Wall Street Analysts Forecast Growth Several analysts have recently weighed in on the company. JPMorgan Chase & Co. upgraded American Express from a “neutral” rating to an “overweight” rating and upped their price objective for the company from $328.00 to $400.00 in a report on Monday, July 13th. Loop Capital initiated coverage on American Express in a report on Thursday, May 21st. They set a “buy” rating and a $389.00 target price on the stock. Guggenheim assumed coverage on shares of American Express in a research report on Monday, July 13th. They issued a “buy” rating on the stock. Freedom Capital raised shares of American Express from a “hold” rating to a “strong-buy” rating in a report on Thursday, May 14th. Finally, Jefferies Financial Group upgraded shares of American Express from a “hold” rating to a “buy” rating in a research report on Monday, July 13th. One research analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating, ten have assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the company has an average rating of “Moderate Buy” and an average price target of $373.32. View Our Latest Analysis on AXP

American Express Stock Performance AXP opened at $331.99 on Friday. The firm has a market cap of $224.20 billion, a PE ratio of 20.15, a P/E/G ratio of 1.37 and a beta of 1.04. The company has a quick ratio of 1.54, a current ratio of 1.55 and a debt-to-equity ratio of 1.66. The business has a fifty day simple moving average of $342.98 and a 200-day simple moving average of $326.77. American Express Company has a fifty-two week low of $290.97 and a fifty-two week high of $387.49.

American Express (NYSE:AXP – Get Free Report) last issued its quarterly earnings results on Friday, July 24th. The payment services company reported $4.53 earnings per share for the quarter, topping analysts’ consensus estimates of $4.41 by $0.12. American Express had a return on equity of 34.12% and a net margin of 15.07%.The firm had revenue of $19.64 billion for the quarter, compared to analysts’ expectations of $19.70 billion. During the same quarter last year, the business posted $4.08 EPS. American Express’s revenue was up 10.0% on a year-over-year basis. American Express has set its FY 2026 guidance at 17.300-17.900 EPS. As a group, equities analysts predict that American Express Company will post 17.67 EPS for the current fiscal year.

American Express Dividend Announcement The company also recently disclosed a quarterly dividend, which was paid on Monday, August 10th. Investors of record on Thursday, July 2nd were paid a $0.95 dividend. The ex-dividend date of this dividend was Thursday, July 2nd. This represents a $3.80 dividend on an annualized basis and a yield of 1.1%. American Express’s dividend payout ratio (DPR) is currently 23.06%.

(Free Report)

American Express is a global financial services company primarily known for its payment card products, travel services and merchant network. Founded in 1850 as an express mail business, the company evolved through the 20th century into a payments and travel-focused organization. Its core activities include issuing consumer and commercial charge and credit cards, operating a global card acceptance and processing network, and providing travel-related services and customer loyalty programs.

American Express issues a range of products for individuals, small businesses and large corporations, including personal cards, business and corporate cards, and co‑brand partnerships with airlines, hotels and retailers.

See Also Five stocks we like better than American Express 3 Energy Stocks Raising Dividends as the Sector Surges 5 Reasons the S&P 500 Could Keep Rallying Through Year-End Walmart’s Post-Earnings Drop Could Be a Buying Opportunity The Trade Desk’s Earnings Miss Raises a Bigger Question About Its AI Future Want to see what other hedge funds are holding AXP? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for American Express Company (NYSE:AXP – Free Report).

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NEW YORK--(BUSINESS WIRE)--The Board of Directors of American Express Company (NYSE: AXP) declared a dividend on the company’s 6.450% Fixed Rate Reset Noncumulative Preferred Shares, Series E, of $5,912.50 per share (which is equivalent to $5.91250 per related Depositary Share).

The dividend is payable on September 15, 2026, to shareholders of record on September 1, 2026.

ABOUT AMERICAN EXPRESS

American Express (NYSE: AXP) is a global payments and premium lifestyle brand powered by technology. Our colleagues around the world back our customers with differentiated products, services, and experiences that enrich lives and build business success.

Founded in 1850 and headquartered in New York, American Express’ brand is built on trust, security, service, and a rich history of delivering innovation and Membership value for our customers. We seek to provide the world’s best customer experience every day to a broad range of consumers, small and medium-sized businesses, and large corporations, and we build and manage relationships with millions of merchants across our global network.

For more information about American Express, visit americanexpress.com, americanexpress.com/en-us/newsroom/, and ir.americanexpress.com.

Source: American Express Company

Location: Global

More News From American Express Company

Back to Newsroom

NEW YORK--(BUSINESS WIRE)--American Express today announced it is adding the illustrious St Andrews Links to its sports partnership portfolio. American Express will be the Official Payments Partner of one of the world's most prestigious golf destinations. With American Express' large international presence, the partnership will help to make St Andrews accessible to more golfers and Card Members from around the world. This partnership builds on the breadth of American Express' global sports part.

BlackRock Inc. bought a new stake in shares of American Express Company (NYSE:AXP) during the second quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor bought 42,006,392 shares of the payment services company’s stock, valued at approximately $14,208,662,000. BlackRock Inc. owned about 6.22% of American Express as of its most recent filing with the Securities & Exchange Commission.

Several other hedge funds and other institutional investors have also recently modified their holdings of AXP. Evolution Wealth Management Inc. boosted its holdings in American Express by 6,600.0% during the 4th quarter. Evolution Wealth Management Inc. now owns 67 shares of the payment services company’s stock valued at $25,000 after acquiring an additional 66 shares during the period. Joseph Group Capital Management bought a new position in American Express in the 4th quarter valued at $26,000. Sfam LLC purchased a new stake in American Express in the fourth quarter worth $26,000. Caitong International Asset Management Co. Ltd bought a new stake in shares of American Express during the fourth quarter worth $28,000. Finally, Wilkerson Advisory Group LLC bought a new stake in shares of American Express during the fourth quarter worth $29,000. 84.33% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Ratings Changes AXP has been the topic of a number of research analyst reports. Bank of America upped their price target on shares of American Express from $387.00 to $391.00 and gave the stock a “buy” rating in a report on Thursday, July 9th. Morgan Stanley decreased their price objective on shares of American Express from $385.00 to $382.00 and set an “equal weight” rating for the company in a report on Monday, July 27th. Royal Bank Of Canada cut shares of American Express from a “moderate buy” rating to a “hold” rating in a research report on Monday, July 13th. Freedom Capital upgraded shares of American Express from a “hold” rating to a “strong-buy” rating in a research note on Thursday, May 14th. Finally, UBS Group reduced their target price on shares of American Express from $386.00 to $384.00 and set a “neutral” rating on the stock in a research report on Monday, August 3rd. One investment analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating, ten have given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, American Express currently has a consensus rating of “Moderate Buy” and an average price target of $373.32.

Check Out Our Latest Stock Report on AXP American Express Stock Performance Shares of American Express stock opened at $336.50 on Tuesday. The company has a current ratio of 1.55, a quick ratio of 1.54 and a debt-to-equity ratio of 1.66. The stock’s fifty day moving average price is $341.81 and its 200-day moving average price is $327.17. The firm has a market cap of $227.24 billion, a P/E ratio of 20.42, a P/E/G ratio of 1.38 and a beta of 1.04. American Express Company has a 12 month low of $290.97 and a 12 month high of $387.49.

American Express (NYSE:AXP – Get Free Report) last released its quarterly earnings data on Friday, July 24th. The payment services company reported $4.53 earnings per share for the quarter, topping analysts’ consensus estimates of $4.41 by $0.12. American Express had a net margin of 15.07% and a return on equity of 34.12%. The company had revenue of $14.99 billion during the quarter, compared to analyst estimates of $19.70 billion. During the same period in the prior year, the firm earned $4.08 earnings per share. The firm’s revenue for the quarter was up 10.0% compared to the same quarter last year. American Express has set its FY 2026 guidance at 17.300-17.900 EPS. On average, equities research analysts expect that American Express Company will post 17.67 earnings per share for the current fiscal year.

American Express Dividend Announcement The firm also recently declared a quarterly dividend, which was paid on Monday, August 10th. Stockholders of record on Thursday, July 2nd were given a $0.95 dividend. This represents a $3.80 annualized dividend and a dividend yield of 1.1%. The ex-dividend date of this dividend was Thursday, July 2nd. American Express’s dividend payout ratio is presently 23.06%.

(Free Report)

American Express is a global financial services company primarily known for its payment card products, travel services and merchant network. Founded in 1850 as an express mail business, the company evolved through the 20th century into a payments and travel-focused organization. Its core activities include issuing consumer and commercial charge and credit cards, operating a global card acceptance and processing network, and providing travel-related services and customer loyalty programs.

American Express issues a range of products for individuals, small businesses and large corporations, including personal cards, business and corporate cards, and co‑brand partnerships with airlines, hotels and retailers.

Featured Articles Five stocks we like better than American Express Commodities Are Booming, But These 3 ETFs Tell Different Stories 3 Active ETFs Making Big Moves in August This ETF Is Outperforming by Avoiding the S&P 500’s Biggest Problem Birkenstock Beats the Skeptics—But Not on EPS Want to see what other hedge funds are holding AXP? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for American Express Company (NYSE:AXP – Free Report).

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On August 17, 2026, we delve into the DCF analysis for American Express Co
AXP -0.43% 84

, a company that has shown varied price performance over the past year. Currently priced at $342.48, AXP has experienced a year-to-date decline of 6.7%, despite a 12.5% increase over the past year. Here are some key points from our analysis:

DCF Earnings-based intrinsic value is $320.04, indicating a margin of safety of -7.0% compared to the current price. DCF Free Cash Flow (FCF)-based intrinsic value stands at $377.37, providing a second opinion on valuation. GF Score™ of 84/100 suggests a solid but not perfect reliability of the DCF inputs, especially given the low predictability rank of 1/5 stars. What Is AXP Worth? DCF Earnings-Based Model The DCF earnings-based model for American Express Co employs a two-stage approach to estimate intrinsic value. The first stage assumes a robust growth rate of 12.8% for the next ten years, followed by a terminal growth rate of 4% for the subsequent ten years. The discount rate used is 11%, which accounts for the risk-free rate and equity risk premium.

Parameter Value Current EPS (TTM, excl. non-recurring) $16.59 10-Year Growth Rate 12.8% 10-Year Treasury Rate 4.68% Discount Rate (ceil(Treasury) + 6%) 11% Terminal Growth Rate 4% The calculation summary for the two-stage model is as follows:

Stage Description Value Growth Stage (Years 1-10) EPS growing at 12.8%, discounted at 11% $181.46 Terminal Stage (Years 11-20) 4% terminal growth, discounted at 11% $138.58 Intrinsic Value Growth + Terminal $320.04 With the current price at $342.48, the intrinsic value of $320.04 indicates that AXP is fairly valued, with a margin of safety of -7.0%. It is important to note that GuruFocus utilizes EPS excluding non-recurring items, as research indicates that stock prices are more closely correlated with earnings than with free cash flow. For further details, you can explore the AXP DCF Calculator.

What Does the Free Cash Flow DCF Say? The Free Cash Flow (FCF)-based intrinsic value for AXP is calculated at $377.37. This figure presents a contrasting view compared to the earnings-based DCF model, suggesting a potential disagreement in valuation perspectives. However, both models indicate that the stock is fairly valued, with the FCF model providing a margin of safety of 9.2%.

How Does GF Value™ Compare to the DCF Models? According to GuruFocus, the GF Value™ for AXP is $339.82, providing another perspective on valuation. GF Value™ is derived from historical trading multiples, past business growth, and future performance estimates, offering a comprehensive view of the stock's worth. In this case, the three models present a mixed consensus, with the DCF earnings model suggesting a slight overvaluation, while the FCF and GF Value™ indicate a more favorable outlook. For more insights, visit the GF Value™ page.

What Does AXP's GF Score™ Tell Us? The GF Score™ evaluates a stock's overall quality based on various factors, including financial strength, profitability, growth, valuation, and momentum. AXP's GF Score™ of 84/100 reflects a strong performance in these areas, although its predictability rank of 1/5 stars suggests that the DCF model may be less reliable for this stock. Below is a summary of AXP's GF Score™ metrics:

Metric Rating GF Score™ 84/100 Financial Strength 3/10 Profitability 7/10 Growth 9/10 Valuation 9/10 Momentum 8/10 For further details on AXP's performance, you can check the AXP stock page.

Key Assumptions and Limitations It is crucial to recognize that DCF models are highly sensitive to the assumptions made regarding growth and discount rates. Stocks with low predictability ratings, such as AXP's 1/5 stars, produce less reliable DCF estimates. The terminal growth rate of 4% is a simplifying assumption that may not fully capture future performance.

What This Means for Investors In synthesizing the three valuation models—DCF earnings, DCF FCF, and GF Value™—we find a notable tension. The earnings DCF suggests a slight overvaluation, while the FCF DCF and GF Value™ indicate a more favorable outlook. This discrepancy is further complicated by the current guru ownership signal, with 24 gurus holding the stock, 8 adding, and 13 trimming their positions in recent quarters. Additionally, insider activity shows net selling of $2.4M over the past three months, which may signal caution. Overall, while the DCF models provide valuable insights, the GF Value™ and qualitative factors may offer a more reliable perspective on AXP's valuation. For a deeper dive, explore the AXP DCF Calculator.

Frequently Asked Questions What is AXP's intrinsic value based on DCF?

According to our analysis, the earnings-based intrinsic value is $320.04, while the FCF-based intrinsic value is $377.37.

Is AXP overvalued or undervalued?

The consensus suggests that AXP is fairly valued, with the earnings DCF indicating slight overvaluation and the FCF DCF and GF Value™ suggesting a more favorable outlook.

How reliable is the DCF model for AXP?

Given AXP's predictability rank of 1/5 stars, the DCF model's reliability is considered low.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

Baxter Bros Inc. acquired a new stake in American Express Company (NYSE: AXP) in the undefined quarter, according to the company in its most recent 13F filing with the SEC. The firm acquired 82,605 shares of the payment services company's stock, valued at approximately $27,941,000. American Express makes up approximately 3.2% of Baxter Bros Inc.'s portfolio,

Posted by Defense World Staff on Aug 15th, 2026

BIP Wealth LLC purchased a new position in American Express Company (NYSE:AXP) during the second quarter, according to its most recent Form 13F filing with the SEC. The fund purchased 2,938 shares of the payment services company’s stock, valued at approximately $994,000.

A number of other institutional investors and hedge funds also recently added to or reduced their stakes in AXP. Brighton Jones LLC increased its holdings in shares of American Express by 24.4% in the 4th quarter. Brighton Jones LLC now owns 6,481 shares of the payment services company’s stock worth $1,924,000 after purchasing an additional 1,273 shares in the last quarter. Sivia Capital Partners LLC lifted its stake in American Express by 13.0% during the 2nd quarter. Sivia Capital Partners LLC now owns 1,738 shares of the payment services company’s stock valued at $554,000 after acquiring an additional 200 shares during the period. Schnieders Capital Management LLC. purchased a new stake in shares of American Express during the 2nd quarter valued at about $428,000. Howland Capital Management LLC boosted its holdings in shares of American Express by 4.2% during the 2nd quarter. Howland Capital Management LLC now owns 2,216 shares of the payment services company’s stock valued at $707,000 after acquiring an additional 90 shares during the last quarter. Finally, HUB Investment Partners LLC grew its stake in shares of American Express by 19.9% in the second quarter. HUB Investment Partners LLC now owns 2,898 shares of the payment services company’s stock worth $924,000 after acquiring an additional 481 shares during the period. Institutional investors own 84.33% of the company’s stock.

American Express Stock Performance NYSE AXP opened at $342.27 on Friday. American Express Company has a fifty-two week low of $290.97 and a fifty-two week high of $387.49. The company has a market cap of $231.14 billion, a P/E ratio of 20.77, a P/E/G ratio of 1.39 and a beta of 1.04. The company has a debt-to-equity ratio of 1.66, a quick ratio of 1.54 and a current ratio of 1.55. The business’s 50 day moving average price is $341.33 and its 200-day moving average price is $327.58.

American Express (NYSE:AXP – Get Free Report) last released its earnings results on Friday, July 24th. The payment services company reported $4.53 earnings per share (EPS) for the quarter, topping the consensus estimate of $4.41 by $0.12. The firm had revenue of $14.99 billion during the quarter, compared to analyst estimates of $19.70 billion. American Express had a net margin of 15.07% and a return on equity of 34.12%. The business’s revenue was up 10.0% on a year-over-year basis. During the same quarter last year, the business earned $4.08 EPS. American Express has set its FY 2026 guidance at 17.300-17.900 EPS. Sell-side analysts predict that American Express Company will post 17.67 earnings per share for the current year.

American Express Announces Dividend The business also recently disclosed a quarterly dividend, which was paid on Monday, August 10th. Investors of record on Thursday, July 2nd were issued a dividend of $0.95 per share. The ex-dividend date was Thursday, July 2nd. This represents a $3.80 dividend on an annualized basis and a yield of 1.1%. American Express’s dividend payout ratio (DPR) is presently 23.06%.

More American Express News Here are the key news stories impacting American Express this week:

Positive Sentiment: Expanded virtual-card capabilities: AXP is making American Express Virtual Cards available through its @ Work platform for U.S. corporate customers. The products offer adjustable spending limits, enhanced fraud protection and easier expense management, potentially increasing commercial-payment volumes and customer retention. American Express expands virtual cards for US commercial customers Positive Sentiment: Premium travel ecosystem strengthened: American Express added 350 luxury hotels across 116 countries to the Platinum Card travel program. More curated booking options could improve the value proposition of its premium cards, support spending and help justify annual fees. American Express adds 350 luxury hotels to Platinum Card travel program Positive Sentiment: Evidence of loyalty-driven spending: United Airlines’ results highlighted how American Express perks can help capture premium travel spending, even without a United co-branded card. The example supports AXP’s broader strategy of using travel benefits and partnerships to attract affluent customers. Popular legacy airline captures premium spend because of American Express perks Positive Sentiment: Constructive analyst outlook: Piper Sandler forecast meaningful appreciation potential for AXP shares, providing a positive signal following the company’s recent earnings beat and continued revenue growth. Piper Sandler Forecasts Strong Price Appreciation for American Express Stock Neutral Sentiment: Capital structure update: AXP issued Series E preferred shares and announced full redemption of Series D preferred shares. The move may improve funding flexibility, but it also adds preferred financing obligations and has limited direct impact on common-share earnings. American Express Issues New Series E Preferred Shares Neutral Sentiment: Mixed analyst sentiment: Coverage of AXP showed differing views, suggesting valuation and expectations remain areas of debate despite the company’s strong operating trends. Analysts Have Conflicting Sentiments on American Express Wall Street Analysts Forecast Growth A number of research analysts recently weighed in on the stock. Benchmark assumed coverage on shares of American Express in a research report on Monday, July 13th. They set a “buy” rating on the stock. DZ Bank upgraded shares of American Express from a “hold” rating to a “buy” rating and set a $375.00 target price for the company in a research note on Thursday, June 18th. Weiss Ratings reissued a “hold (c+)” rating on shares of American Express in a report on Monday, July 13th. Freedom Capital upgraded American Express from a “hold” rating to a “strong-buy” rating in a research note on Thursday, May 14th. Finally, Loop Capital assumed coverage on American Express in a research report on Thursday, May 21st. They set a “buy” rating and a $389.00 price objective for the company. One analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating, ten have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average price target of $373.32.

Check Out Our Latest Analysis on AXP

American Express Company Profile (Free Report)

American Express is a global financial services company primarily known for its payment card products, travel services and merchant network. Founded in 1850 as an express mail business, the company evolved through the 20th century into a payments and travel-focused organization. Its core activities include issuing consumer and commercial charge and credit cards, operating a global card acceptance and processing network, and providing travel-related services and customer loyalty programs.

American Express issues a range of products for individuals, small businesses and large corporations, including personal cards, business and corporate cards, and co‑brand partnerships with airlines, hotels and retailers.

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NEW YORK--(BUSINESS WIRE)--American Express today announced new capabilities to help U.S. commercial customers simplify payments and give them more options to efficiently manage spending in their financial software of choice with American Express® Virtual Cards. Virtual cards are a fast-growing commercial payment method that offer greater control through adjustable spending limits and added security through unique digital card numbers. Amex Corporate customers can now create, manage and use Amex Virtual Cards1 in Amex’s software platform, @ Work2, which customers can use to manage their Corporate Program. In addition, customers who use Amex’s Business Travel Account with Virtual Payments (BTA), a centrally billed account for business travel payments, can now create, manage and use Amex Virtual Cards with solutions from Conferma, a leader in virtual payments technology.

"Businesses want to simplify how they pay for things while maintaining control and visibility into spending across employee expenses, supplier payments and business travel," said Eva Reda, Executive Vice President, Global Commercial Services Products, American Express. "Virtual cards can help solve many of these challenges, which is why we're making it easier for customers to create and manage them in the software and digital wallets they’re already using while preserving the trust, security and service our customers expect from Amex."

Virtual Card Use Grows Across a Range of Business Spending

Virtual cards can be used for many types of business spending, from supplier payments to everyday purchasing to travel expenses, and for contractors, interns, company guests or other authorized users who don’t have a traditional Corporate Card. Amex Virtual Cards provide that convenience plus the added security of the lowest U.S. fraud rate among major card networks for the last 19 consecutive years.

Whether reserving travel in advance, paying for expenses with a Digital Wallet3, or making supplier payments or everyday business purchases, virtual cards give authorized users an easy way to pay for expenses that reduces the need for personal card reimbursements and helps businesses capture more purchases on approved payment methods while maintaining visibility into spending.

New Ways to Manage and Use Amex Virtual Cards

American Express is expanding access to Virtual Cards in the tools customers already use to manage their business spending.

Amex Corporate customers can now create and manage Amex Virtual Cards in the @ Work platform, which helps customers manage Corporate Card applications, track employee spending and generate customer reports with the ability to integrate with Enterprise Resource Planning (ERP) and Expense Management platforms.

With Amex Virtual Cards now in @ Work, eligible customers can:

Enable employees, contractors and other authorized users to make payments for a wide range of business expenses, from travel to everyday purchases such as office supplies and event vendors, helping businesses remain flexible as spending needs change. Set custom spending limits, timeframes for use, and country and merchant category code restrictions4,5, helping businesses stay in control of how and when Amex Virtual Cards are used. Create and manage Amex Virtual Cards directly from the same software platform Amex Corporate customers are already using to manage their Amex Corporate Program. Amex Virtual Cards in @ Work are currently available to select U.S.-based American Express® Corporate Program customers, with additional availability planned. Contact your American Express representative to learn more.

For customers using BTA, American Express is also expanding Amex Virtual Card capabilities through an expanded relationship with Conferma6 (enrollment required).

Eligible BTA customers can now create Amex Virtual Cards through the Conferma mobile app for eligible on-the-go expenses, including meals, retail purchases, car rentals, rideshares and other eligible charges incurred during business travel. This collaboration complements BTA’s central billing capabilities, which help give companies greater control over higher cost expenses like airfare and hotels, by enabling travelers to use Amex Virtual Cards for expenses that require payment at the point of purchase.

Additional benefits include:

Enhanced spending controls: Businesses can establish spending amounts and time limits for Amex Virtual Cards, helping reduce the risk of unauthorized use while supporting compliance with company travel policies. Through Conferma, travelers can receive or request Amex Virtual Cards that can be routed through multi-level approval workflows before use. Simplified expense management: Enhanced transaction data, customizable reporting and digital receipt capture within the Conferma mobile app can help reduce manual reconciliation and streamline expense reporting. An improved traveler experience: By using the American Express Business Travel Account and Conferma, businesses can provide Amex Virtual Cards to a wide range of employees including infrequent travelers or employees without an Amex Corporate Card while reducing administrative work associated with business travel expenses. American Express® Virtual Cards with Conferma are currently available to U.S.-based American Express® BTA customers. A third-party token facilitator, Conferma facilitates the distribution of Amex Virtual Cards. The availability, functionality, and performance of capabilities offered by Conferma may be subject to change without prior notice. For more information, contact your American Express representative.

1 American Express @ Work® Virtual Cards are available only for select US central-bill funding accounts (i.e., Business Travel Account with Virtual Payments, Corporate Card Central Bill Account with centrally managed Virtual Card capability, Corporate Meeting Card, Corporate Purchasing Card, and vPayment). To learn more or enable this capability, please contact your American Express representative.

2 Use of American Express @ Work® is restricted to employees, contractors and/or agents that the Company, and its representatives designated for the sole purpose of performing online account queries and maintenance, including accessing and/or creating reports relating to the Company's American Express® Corporate Card programs. @ Work is available to all companies with an American Express Corporate Card program. Enrollment is required. To enroll in @ Work please contact your American Express Representative or call 1-888-800-8564.

3 Digital Wallets are Apple Pay®, Google Pay™, or Samsung Pay. Terms apply. In-app push-provisioning may not be available for all digital wallets. Contactless payments are accepted at participating merchants that accept American Express.

4 Country controls apply to card-present transactions only and depend on merchant classification.

5 Merchant category controls can help manage where Cards are used, but they rely on merchant classification and transaction data that may not always reflect the underlying purchase. As a result, controls may not apply as intended in all cases, including when transactions are processed through third parties or where merchant classification is inaccurate. Controls are subject to configuration limits and do not guarantee that all transactions will be approved or declined as expected.

6 The availability, functionality, and performance of capabilities offered by Conferma may be subject to change without prior notice.

ABOUT AMERICAN EXPRESS

American Express (NYSE: AXP) is a global payments and premium lifestyle brand powered by technology. Our colleagues around the world back our customers with differentiated products, services, and experiences that enrich lives and build business success.

Founded in 1850 and headquartered in New York, American Express’ brand is built on trust, security, service, and a rich history of delivering innovation and Membership value for our customers. We seek to provide the world’s best customer experience every day to a broad range of consumers, small and medium-sized businesses, and large corporations, and we build and manage relationships with millions of merchants across our global network.

For more information about American Express, visit americanexpress.com, americanexpress.com/en-us/newsroom/, and ir.americanexpress.com.

Location: U.S.

By PYMNTS  |  August 13, 2026

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American Express is expanding the availability of virtual cards for businesses, as more companies use digital payments to manage expenses and reduce fraud.

The company said in a Thursday (Aug. 13) press release that U.S. corporate customers can now create, manage and use American Express Virtual Cards through its @ Work platform, which businesses use to manage their Corporate Card programs. The cards can be configured with spending limits, usage timeframes and certain country and merchant restrictions, and can be managed without moving between systems.

“Businesses want to simplify how they pay for things while maintaining control and visibility into spending across employee expenses, supplier payments and business travel,” said Eva Reda, executive vice president of global commercial services products at American Express. “Virtual cards can help solve many of these challenges.”

The expansion also reaches business travel. American Express is expanding its relationship with Conferma, a virtual payments technology provider, to let eligible Business Travel Account customers create and manage Amex Virtual Cards through Conferma’s mobile app. Travelers can use the cards for eligible purchases such as meals, retail purchases, car rentals and rideshares, complementing the Business Travel Account’s centralized billing for airfare and hotels.

The virtual cards let finance teams set rules around spending before a transaction occurs. Businesses can issue cards to employees, contractors, interns, guests and other authorized users who may not have a traditional corporate card. They can also use approval workflows, transaction data, digital receipts and reporting to reduce manual reconciliation.

The move comes as virtual cards become a control layer for corporate payments. Earlier this month, Amex shared that its commercial services spending grew 5% in the second quarter, while the company has argued that its closed-loop network gives it advantages in fraud protection and transaction data. The financial services company has been embedding spending rules, supplier verification and invoice data into B2B payments. Amex’s recent partnership with Bottomline similarly aims to improve supplier onboarding, payment visibility and invoice matching. The latest move extends that approach to corporate and travel spending, giving businesses a way to apply policy and collect transaction data at the point of payment.

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By PYMNTS  |  August 11, 2026

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Fazeshift has secured an investment from Amex Ventures to help expand its artificial intelligence agent platform beyond accounts receivable and into additional finance operations, Fazeshift said in a Tuesday (Aug. 11) press release.

The investment from Amex Ventures, which is the corporate venture capital arm of American Express, builds on Fazeshift’s Series A that was announced earlier this year, according to the release.

The Series A, which was announced May 7, raised $17 million and brought Fazeshift’s total funding to $22 million, the company said at the time in a press release.

Fazeshift’s AI agent platform currently automates accounts receivable workflows such as invoicing, payment reconciliation and collections across the tools finance teams already use, per the release.

The new funding from Amex Ventures will support Fazeshift’s product development and team growth as the company expands its platform beyond accounts receivable and toward becoming “a CFO suite built for autonomous finance,” the company said in the release.

“This investment lets us move faster on our mission of giving finance teams their time back,” Fazeshift CEO and Co-Founder Caitlin Leksana said in the release. “We’re grateful to welcome Amex Ventures as an investor to continue our work building the future of enterprise finance.”

Amex Ventures Managing Director Margaret Lim said in the release: “We are excited to be backing Fazeshift as they continue to assemble a strong team and build out an expanding suite of agentic capabilities to modernize finance operations. Their AI-native approach and deep customer focus have delivered meaningful value to finance teams.”

When announcing its Series A in May, Fazeshift said corporate finance teams are undergoing a structural transition as AI technology shifts from a supplementary tool into an autonomous execution engine.

Fazeshift’s platform automates more than 90% of manual accounts receivable tasks for its users. As of May, the company had grown its revenue twelvefold and was serving dozens of enterprise clients, including eight billion-dollar “unicorn” startups. In one case, the Fazeshift platform’s AI agents automated more than 9,000 customer communications in a single day and helped collect $7.4 million in cash within weeks of its initial deployment.

Fazeshift’s seed funding round, which was announced in January 2025 and raised $4 million, was led by Gradient, which was Google’s early-stage AI fund at the time.

See More In: accounts receivable, American Express, artificial intelligence, B2B, B2B Payments, funding, Investments, News, PYMNTS News, What's Hot, What's Hot In B2B

NEW YORK--(BUSINESS WIRE)--American Express is channeling the unmistakable energy of the US Open Tennis Championships into unique experiences for Card Members and US Open fans during the tournament from Aug. 23 to Sept. 13. The US Open American Express Fan Experience Opening its doors at the start of US Open Fan Week, the US Open American Express Fan Experience will feature the return of its fan-favorite customized tennis balls and Dove refresh station, as well as a revamped lineup of interacti.

American Express (AXP -1.43%) stock has sputtered this year compared with its benchmarks, sector, and major competitors. The stock is down about 6% year to date, while Visa is up 6%, and Mastercard is flat. The Dow Jones Industrial Average and S&P 500 -- two indexes that include American Express -- are each up 13% so far this year. And the financial services sector within the S&P 500 has averaged a 5% return.

But based on several factors, investors and analysts may be underrating the financial services giant. Just 48% of Wall Street analysts rate it a buy, compared with 93% each for Mastercard and Visa. Here's why you should consider this underrated and overlooked payments stock.

Image source: Getty Images.

Concerns about spending American Express stock struggled in the weeks leading up to its second-quarter earnings release as investors grew concerned about the macro environment and its impact on banks, consumer spending, rates, and credit quality. But when American Express reported Q2 earnings on July 24, the stock price rose as investors were pleasantly surprised.

Revenue increased 10% year over year to $19.6 billion but fell just short of estimates of $19.7 billion. Earnings were up 11% to $4.53 per share, beating estimates of $4.40 per share. And credit quality was strong, with provisions for credit losses and 30-day delinquency rates down year over year and net write-offs holding steady.

Based on strong performance, American Express raised its revenue guidance for the fiscal year to 10% growth -- up from 9% to 10%. It did not, however, boost its earnings guidance, which it kept at $17.30 to $17.90 per share. That would be about 14% growth over fiscal 2025 at the midpoint.

But some investors were concerned about higher spending, as expenses rose 12% in Q2 to $14.5 billion, outpacing revenue growth. Part of the increase was due to higher spending on customer engagement and acquisition costs.

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On the earnings call, CEO Stephen Squeri said the higher spending on marketing, technology, and customer engagement and acquisition is necessary to maintain high retention rates and ensure long-term growth. And this is the time to do it, after strong revenue growth in the first half of the year. Squeri said:

As our strong performance has shown, we are winning with the next generation of premium customers, and we have significant growth opportunities across our businesses and around the world. Taken together, this gives us confidence in our long runway to sustainable growth and our ability to continue delivering attractive returns for our shareholders.

Time to buy? The concern is that this investment ramp-up, which is expected to continue in the second half of the year, will slow growth. But even the 14% projected earnings growth would be higher than the 10% earnings growth rate in 2025. And the consensus among analysts calls for about 14% growth in 2027, to an estimated $20.12 per share.

American Express has long been a well-managed company -- it's why it is one of the largest and oldest holdings in the Berkshire Hathaway portfolio. With its lower valuation, trading at 20 times earnings, and its investment in long-term growth, it's an underrated buy right now.

American Express is an advertising partner of Motley Fool Money. Dave Kovaleski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends American Express, Berkshire Hathaway, Mastercard, and Visa. The Motley Fool has a disclosure policy.

Investors interested in Financial - Miscellaneous Services stocks are likely familiar with Intercorp Financial Services Inc. (IFS) and American Express (AXP). But which of these two stocks presents investors with the better value opportunity right now?

American Express (AXP +2.34%) and PayPal (PYPL +1.23%) both changed how people spend money. American Express is one of the world's largest credit card companies, and PayPal is one of the top digital payment platforms. American Express is often considered a slower-growth blue chip stock, while PayPal usually attracts growth-oriented investors.

But over the past five years, American Express' stock has more than doubled, while PayPal's has plummeted nearly 80%. Let's see why that divergence occurred -- and if American Express will continue to outperform PayPal when the next recession hits.

Image source: Getty Images.

The differences between American Express and PayPal American Express issues its own credit cards and runs its own banking accounts. That sets it apart from Visa (V -0.08%) and Mastercard (MA -0.18%), which don't issue their own cards and rely on partner banks to handle the actual accounts.

To protect its balance sheet from bad debt, American Express issues its cards to more affluent customers with higher credit scores. Those higher standards give it a smaller market than Visa or Mastercard, but also provide it with more downside protection during a recession.

It's also resistant to interest rate swings, as higher rates usually boost the net interest income from its revolving card balances and cash holdings. That growth can offset the macro pressure of inflation and higher rates on its consumer-driven credit card business. It serves more than 140 million cardholders worldwide.

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PayPal generates most of its revenue by charging transaction fees on its checkout services and money transfers. However, its take rate (the percentage of each transaction it retains as revenue) has been declining as it faces more competition and relies heavily on its lower-margin unbranded payment services and Venmo peer-to-peer payments. Its growth in active accounts, which reached 439 million in its latest quarter, has also slowed to a crawl.

Unlike American Express, PayPal's business model isn't naturally insulated from economic downturns. A macro-induced slowdown in retail spending will inevitably throttle its growth and crush its margins. It's trying to widen its moat through deeper partnerships with credit card companies, Venmo's expansion, new services for brick-and-mortar stores, crypto trading tools, high-yield savings accounts, and stablecoin-powered cross-border transfers.

Unfortunately, all of those businesses will struggle during a prolonged recession. All of those existential challenges are preventing PayPal from keeping up with American Express.

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What will happen over the next few years? From 2025 to 2028, analysts expect American Express' revenue and EPS to grow at CAGRs of 9% and 14%, respectively. Assuming a recession doesn't occur, that growth should be fueled by its focus on younger Millennial and Gen Z consumers, its international expansion, and its rollout of more Platinum and Gold card benefits in exchange for higher annual fees.

From 2025 to 2028, analysts expect PayPal's revenue and EPS to grow at CAGRs of 5% and 4%, respectively. It plans to drive that growth by streamlining its business, monetizing Venmo more aggressively, expanding its crypto capabilities, and scaling its higher-margin integrated advertising business. It also plans to buy back more shares to boost its EPS.

American Express and PayPal trade at 19 times and 11 times this year's earnings, respectively. PayPal seems like the cheaper stock, but it arguably deserves that discount because it faces formidable near-term and long-term challenges. PayPal recently rejected a joint takeover bid from Stripe and Advent International at $60.50 per share, claiming the bid undervalued its business. However, it still needs to prove it deserves a higher valuation.

The choice between American Express and PayPal is a simple one. American Express operates a balanced business with a wide moat, while PayPal's moat is shrinking in a fragmented market filled with similar fintech companies. So while a recession would only be a temporary setback for American Express, it could irreparably damage PayPal's fragile turnaround efforts.

All in all, last quarter was another good one for credit card outfit American Express (AXP -0.38%). Total revenue grew 10% year over year to $19.6 billion, pushing per-share income up from $4.08 a year earlier to $4.53 for the three months ending in June. The company even raised its 2026 revenue guidance to 10% above last year's top line of just over $72.2 billion, up from the predicted range of 9% to 10% given with this year's first-quarter results.

Curiously, however, American Express didn't raise its full-year earnings expectations in step with its upward-revised revenue guidance. It still anticipates reporting per-share earnings of only $17.30 to $17.90 for 2026. What gives?

The company actually dropped a small hint during its second-quarter earnings conference call.

Not exactly a veiled secret If you were listening for it, CFO Christophe Le Caillec plainly connected the dots by commenting during the second-quarter earnings call, "As we increase investments in new customer acquisition and technology development, we are maintaining our full-year EPS guidance of $17.30-$17.90." Le Caillec added during the call that spending on marketing could be up 10% in the second half of 2026.

Image source: Getty Images.

CEO Steve Squeri also highlighted the planned acquisition of online restaurant reservation and management platform TheFork as a potential driver of long-term growth as an example of these intended investments. He added for good measure, "There is no shortage of technology investments or enhancements or refreshes that need to occur."

And for what it's worth, we're already seeing glimpses of this profit-crimping spending. Last quarter's card-member services costs grew 50% year over year to $1.95 billion, while outlays on data processing and equipment grew 13%, to over $800 million.

Not a reason to avoid American Express stock As a shareholder of any company, it can be a bit concerning to see that organization ramp up its spending plans so much that revenue growth isn't paired with comparable profit growth. American Express's investors certainly panicked on this news, sending AXP shares down more than 4% the very same day the news was announced.

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Just don't lose perspective on the matter. American Express has a fantastic long-term track record of producing meaningful growth from these sorts of investments. With the exception of pandemic-plagued 2020, not once in the past 10 years has Amex failed to grow its annualized top line. In fact, its revenue has more than doubled during this stretch. So have its profits, even if more erratically.

AXP Net Income (Quarterly) data by YCharts

So, don't sweat the seemingly disappointing guidance surprise too much. It's a short-term annoyance with a much longer-term payoff.

It's also possible that American Express's management team is just making sure it doesn't overpromise results it won't end up being unable to deliver. There's still a good chance it will outperform its own profit guidance, just as it's topped analysts' earnings estimates in nine of the past 10 quarters.