American Express Company (NYSE:AXP) is a prominent player in the financial services industry, known for its charge and credit card products and travel-related services. Founded in 1850, the company operates through three main segments: Global Consumer Services Group, Global Commercial Services, and Global Merchant and Network Services. It serves a diverse clientele, including consumers, small businesses, and large corporations.
The consensus price target for AXP has experienced some fluctuations over the past year. Last month, the average price target was $339.6, a slight decrease from the previous quarter's $349.71. However, it remains higher than last year's $328.67, indicating a general optimism among analysts about the stock's potential. This optimism is supported by the company's strong financial performance and market position.
As American Express prepares to announce its third-quarter earnings results, analysts are closely watching the stock. Barclays analyst Mark DeVries has set a price target of $145, reflecting expectations for the company's financial performance. The upcoming earnings report is anticipated to show revenue growth of 8.5% year-over-year, reaching $18 billion, with earnings per share expected to rise by 6.5% to $3.28.
Despite the positive outlook, some analysts suggest that American Express may not have the optimal combination of factors necessary for an earnings beat. However, the company's robust reward program and strong consumer sentiment provide a competitive edge, as highlighted by Stephen Biggar. Investors are advised to monitor the company's performance closely, especially in light of the upcoming earnings report.
American Express is highlighted as a stock with potential to exceed quarterly earnings estimates. According to Zacks, utilizing their Earnings ESP (Expected Surprise Prediction) can help investors identify such opportunities. With a price target of $145 set by Barclays analyst Mark DeVries, there is confidence in the stock's future performance, making it a stock worth considering for investors.
