American Express Company

New York Stock Exchange
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Bullish +75

Why American Express (AXP) is a Top Momentum Stock for the Long-Term

📈 American Express (AXP) is highlighted as a top momentum stock suitable for long-term investment.

🏢 The company operates as a diversified financial services firm with integrated payment networks.

📊 AXP currently holds a Zacks Rank of #3, which translates to a Hold rating.

💎 It has received a VGM Style Score of B and a Momentum Style Score of B.

🚀 Shares have appreciated 7.2% over the past four weeks showing recent momentum.

🔍 Analysts raised their fiscal 2026 earnings estimates by an average of $0.09 to $17.59 per share.

😃 The stock boasts a positive average earnings surprise of +4%.

📉 Zacks Rank #1 stocks have historically produced +23.93% annual returns since 1988.

👥 Investors are advised to prioritize stocks with top ranks and Style Scores for success.

🎯 A recent pullback in price is viewed as an ideal entry point for buying the stock now.

🤖 Zacks Premium provides tools like Style Scores and Rank filters to aid investor decisions.

📅 The VGM Score combines value, growth, and momentum metrics for a comprehensive rating.

🚧 Open-loop peers include Visa or Mastercard, while AmEx maintains a closed-loop network.

Bullish Signals
  • American Express (AXP) is a diversified financial services company with a closed-loop payment network that enables deeper customer insights and strong customer loyalty.
  • Shares are up 7.2% over the past four weeks, demonstrating positive momentum for investors to consider.
  • Four analysts revised their earnings estimate higher in the last 60 days, reflecting growing confidence in the company's prospects.
  • The Zacks Consensus Estimate has increased $0.09 to $17.59 per share, indicating a strong upward revision trend.
  • American Express boasts an average earnings surprise of +4%, highlighting consistent outperformance relative to analyst expectations.
  • With a solid Zacks Rank #3 and top-tier Momentum and VGM Style Scores of B, AXP presents an attractive risk-reward profile for investors.
  • The company targets millennial and Gen Z audiences and generated nearly $1 billion in revenue last quarter alone.
Risk Factors
  • American Express (AXP) currently holds a Zacks Rank of #3 (Hold), which indicates the company has a moderate outlook rather than the strong buy or buy ratings associated with higher upside potential.
  • The article notes that even with good Style Scores, stocks with a #4 (Sell) or #5 (Strong Sell) rating have a downward-trending earnings outlook and a bigger chance their share price will decrease.
Full Analysis
American Express (AXP) is highlighted as a top momentum stock for long-term investors according to research from Zacks Premium. The firm utilizes its proprietary Style Scores system, which rates stocks on value, growth, and momentum using an A-F scale, alongside the Zacks Rank model that relies on earnings estimate revisions. Stocks with a #1 or #2 Zacks Rank combined with A or B Style Scores are deemed to have the highest probability of success, though the article notes that even a #3 rank can be favorable if accompanied by strong style scores. AXP currently holds a #3 (Hold) ranking on the Zacks Rank but carries a VGM Score of B, reflecting its performance across value, growth, and momentum dimensions. Specifically for momentum investing, AXP has received a Momentum Style Score of B, with shares gaining 7.2% over the past four weeks. The company also shows positive earnings revision trends, as four analysts raised their estimates higher in the last 60 days for fiscal 2026, pushing the Zacks Consensus Estimate up $0.09 to $17.59 per share. American Express is a diversified financial services firm founded in 1850 that operates on a closed-loop payment network, distinguishing it from open-loop peers like Visa or Mastercard by engaging directly with both merchants and cardholders. This integrated system provides the company with deeper customer insights, targeted marketing capabilities, and strong customer loyalty. Revenue is generated through transaction fees and interest income, supported by this unique payment infrastructure. While AXP presents a favorable profile for momentum strategies with its elevated earnings surprise history of +4% on average, the article also briefly mentions a separate selection of five Zacks experts who picked stocks to potentially double in value, though it does not link that specific recommendation directly to American Express. Investors are advised to consider changes in earnings outlook when evaluating these combined metrics for portfolio construction.