Is American Express Still a Good Investment at Its Current Price?
American Express (NYSE: AXP) has seen its stock fall nearly 12% year-to-date as of July 24, despite strong operational performance. The company reported second-quarter revenue growth of 10%, reaching $19.6 billion, though it missed Wall Street expectations. Earnings per share rose by 11% to $4.53 and beat forecasts. However, the stock dropped 7% following the report due to a lackluster guidance update. Despite short-term volatility, American Express continues to show robust member spending growth of 9%, driven in part by attracting younger demographics like millennials and Gen Zers. The company's premium brand position remains strong amid competitive pressures from other credit card issuers. Long-term optimism is supported by the ongoing shift toward cashless payments. Currently trading at a price-to-earnings ratio of 19.8, American Express has become relatively cheaper since early 2026 but still isn't considered undervalued. Analysts suggest it may be fairly valued given its high-quality business model and long-term growth potential.
Tickers: $AXP