American Express Company

New York Stock Exchange
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Very Bullish +85

Is American Express Company (AXP) A Good Stock To Buy Now? - Yahoo! Finance Canada

- American Express shares traded at $329.87 with a forward P/E ratio of 18.83 as of April 20th.

- The stock dropped ~19.5% year-to-date due to fears about premium consumer weakness and AI impacts.

- Full-year 2025 revenue reached $72.2 billion, representing a 10% increase over the previous year.

- Net card fees hit a record $10 billion after 30 consecutive quarters of double-digit growth.

- U.S. delinquency rates sit at 1.3%, which is below the 20-year average of 1.5%.

- The company maintains a high 34% ROE and returned $7.6 billion to shareholders recently.

- Q4 billed business grew 10% FX-adjusted, with luxury retail spending up significantly by 15%.

Bullish Signals
  • AXP reported full-year 2025 revenue of $72.2 billion, up 10% year-over-year.
  • Net card fees reached a record $10 billion with 30 consecutive quarters of double-digit growth.
  • The company maintains a strong core segment with U.S. delinquency rates at 1.3%, below the 20-year average.
  • Spending trends remain robust with Q4 billed business up 10% and luxury retail up 15%.
  • American Express boasts a 34% ROE, roughly three times peer averages, while returning $7.6 billion to shareholders.
Risk Factors
  • Concerns exist that premium consumers are weakening.
  • AI could pressure the white-collar workforce underpinning its customer base.
  • A minor $0.03 EPS miss occurred alongside a slight 0.2% guidance trim.
  • U.S. small- and mid-sized business spending growth remains modest at ~2%.
  • American Express is not on the list of the 40 Most Popular Stocks Among Hedge Funds.
Full Analysis
American Express (AXP) shares traded at $329.87 on April 20th, reflecting a ~19.5% year-to-date decline amid concerns over premium consumer weakness and AI impacts. Despite a minor $0.03 EPS miss and slight guidance trim, the company reported full-year 2025 revenue of $72.2 billion, up 10%, with record net card fees of $10 billion marking 30 consecutive quarters of double-digit growth. Core high-income customers remain strong, evidenced by U.S. delinquency rates at 1.3% versus a 20-year average of 1.5%. Q4 billed business rose 10% FX-adjusted, driven by luxury retail (+15%) and international spending (+12%). With a 34% ROE and $7.6 billion returned to shareholders, AXP maintains a bullish case supported by resilient fundamentals and 2026 guidance targeting ~10% revenue growth and $17.30–$17.90 EPS.