American Express (AXP) Buy, Sell or Hold

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American Express (AXP)

342.48

-1.17 (0.34%)

as of Aug 14, 2026, 8:00:00 pm Market Open.

172 watching

Investor Insights

Aug 14, 2026, 12:00 am

This summary was created by AI, based on 10 opinions in the last 12 months.

American Express (AXP) has recently reported in-line revenue with an earnings beat, leading to a slight decline in shares followed by a rebound, indicating a potential buying opportunity. The growth in billed business, especially in travel and entertainment categories, has been strong, although concerns arose due to a lack of an increase in the full-year earnings forecast. Analysts highlight that AXP has a different operating model compared to competitors like Visa (V) and Mastercard (MA), citing its unique banking regulations and high-end customer base. Several experts project strong future earnings growth, better than its peers, while the stock's valuation remains attractive relative to its growth potential, demonstrated by a PE ratio that suggests it's trading at a discount despite strong fundamentals.

Consensus

Positive

Valuation

Undervalued

Similar

V, V

COMMENT

Amex vs. Visa Visa. Once international travel picks up, transaction activity will rise. Same with business travel. Visa will benefit from both. Amex also, to a certain extent. The different is that Amex offers credit, while Visa is purely transactional. So, Visa doesn't carry credit risk on those balances while Amex does. This is why Amex trades at a lower multiple. She likes the digital commerce space because it will continue to grow and replace cash, which we saw during the pandemic.

BUY ON WEAKNESS

Negative futures this morning pushed the stock down $2, but snapped back sharply on recent upgrades. This is one example of taking advantage of the futures which are otherwise useless.

BUY

To stay on top of this recovery, follow the money, the payments stocks. He suspects the U.S. will see the Roaring 20s, particularly for small businesses.

BUY

Their earnings report disappointed the street and it sank, but the market got it wrong. This is good long term with a bright future. Entertainment and travel will bounce back big and AmEx will benefit.

COMMENT

They report Friday. It's a barometer stock to determine the strength of the U.S. recovery--small business, travel and entertainment spending.

DON'T BUY

AXP vs. V vs. MA Likes the story of both V and MA. They take no credit risk, just a tollbooth. American Express is very different, as they do take on risk. We're going to a cashless society. Great growth businesses, little capital expenditure. V has lots of growth yet in Asia. Once travel starts up again, V numbers should pick up.

BUY

A reopening play that'll benefit from cross-border transactions and smart management.

PAST TOP PICK

(A Top Pick Jan 30/20, Down 4%) It has come back in a huge way. They will be a massive beneficiary of the return on spending in leisure and travel. Expects an all time high for them. Remains a good holding. Their market is still upper bands of credit cards and they make a healthy amount from annual fees even if some retails may not accept them.

DON'T BUY

Difference from Visa and Mastercard is that AXP carries its own debt load. Normally, a very good company. Credit profile of clients is good. Better to go with the other two from a risk containment point of view. The same train drives all 3 companies.

TOP PICK

It has been an incredible grower. Top line is growing 8% and the bottom line even more. They have great dividend growth and trade at a cheap multiple. It is a great place to be. They may be economically sensitive but they make a lot of money from people paying interest on cards. They would be impacted by a slowdown in travel, however. (Analysts’ price target is $140.42)

COMMENT

She owns Visa instead; it has a stronger growth outlook, especially in Europe. AmEx provides the credit when you use their card whereas Visa and Mastercard provide just the transaction as a bank offers that credit, so the business dynamics are different. She prefers the asset-lite model because it offers higher returns.

DON'T BUY

Within the payment card space, AXP-N has a closed loop network -- they can gather their own customer data on spending and credit use. This allows them to do better target marketing. Someone will probably come in to buy that network in the future he thinks. About 20% of their revenue comes from credit card balances making them susceptible to credit downgrades. He would not step into them now.

BUY ON WEAKNESS

Mastercard vs. Visa He owns neither, though they have performed incredibly well. Don't buy them now in this part of the cycle. He likes American Express for its much-lower valuation, and have performed well, too, but buy that only on a big pullback.

COMMENT

AXP vs. V vs. MA. Wouldn't touch Visa or Mastercard, because they're extremely expensive, unless they have a 50% pullback. But AXP is a whole lot cheaper on price to book. It's the only one with visible upside. But it's bang up against technical resistance at 3.5x book. Hasn't been able to get any further. Visa and Mastercard are a lot more profitable than AXP. AXP has more limited downside.

PAST TOP PICK

(A Top Pick Jul 04/18, Up 31%) Continues to like it. Changing how they're looking at the consumer. Millennials don't pay as much attention to the cache of the AmEx brand. Secular growth continues to be strong, but when a recession is on the horizon, he'll probably exit his position. Yield is 1.3%, with 8% growth on that dividend.

Showing 91 to 105 of 169 entries

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American Express (AXP)