We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
AmEx Up 69% in Past Year: More Growth on the Horizon?
Read MoreHide Full Article
Shares of American Express Company (AXP - Free Report) have gained 69% in the past year compared with the industry’s 22.3% growth. The Finance sector and the S&P 500 composite index rallied 25% and 24.8%, respectively, in the same time frame. With a market capitalization of $220.2 billion, the average volume of shares traded in the last three months was 2.5 million.
American Express benefits from rising consumer spending, sustained travel demand, enhanced digital services and adequate cash generation abilities supporting investments and shareholder returns.
The leading globally integrated payments company with a Zacks Rank #3 (Hold) has a decent earnings surprise history. It beat earnings estimates in three of the trailing four quarters and missed the same once, the average surprise being 6.53%.
Image Source: Zacks Investment Research
Can AXP Retain the Momentum?
The Zacks Consensus Estimate for American Express’ 2025 earnings is pegged at $15.24 per share, indicating a 13.7% increase from the 2024 estimate. The estimate for revenues is $71.5 billion, implying 8.5% growth from the 2024 estimate.
American Express continues to experience robust revenue growth, largely driven by increasing discount revenues, which form a significant portion of its overall income. Rising consumer spending is fueling Card Member activity, thereby contributing to revenue expansion. Additionally, the resurgence in travel demand is expected to bolster service fees and other revenue streams. Over the long term, the company anticipates achieving revenue growth of 10%.
The company is strengthening its presence in the premium consumer market by offering enhanced membership benefits that address everyday expenses, borrowing needs, and travel and lifestyle requirements. Through strategic acquisitions and partnerships, American Express continues to enrich its card offerings and broaden its global footprint.
American Express remains committed to innovation, investing in new product launches and upgrades to existing offerings, which play a critical role in maintaining high Card Member retention. To stay competitive in the digital era, the company has enhanced its suite of digital solutions and services. Recognizing the increasing risks of cybercrime, American Express has also implemented robust fraud prevention measures to protect its customers.
The company's strong liquidity position is underscored by a healthy cash balance, sufficient to cover its short-term debt obligations. American Express's sufficient cash generation capabilities enable it to make significant investments in its business while also supporting shareholder returns through share repurchases and dividends. In March 2024, the company announced a 17% increase in its quarterly dividend. Moreover, it generated $8.3 million in net cash from operations during the first nine months of 2024.
Stocks to Consider
Some better-ranked stocks in the Finance space are Eagle Bancorp, Inc. (EGBN - Free Report) , Berkshire Hills Bancorp, Inc. (BHLB - Free Report) and Farmers & Merchants Bancorp, Inc. (FMAO - Free Report) . While Eagle Bancorp sports a Zacks Rank #1 (Strong Buy), Berkshire Hills Bancorp and Farmers & Merchants Bancorp currently carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Eagle Bancorp’s earnings surpassed estimates in two of the trailing four quarters and missed the mark twice, the average surprise being 12.38%. The Zacks Consensus Estimate for EGBN’s 2025 earnings indicates an improvement of 29.4% while the same for revenues implies growth of 6.3% from the corresponding 2024 estimates. The consensus mark for EGBN’s earnings has moved 8% north in the past seven days.
The bottom line of Berkshire Hills Bancorp beat estimates in three of the trailing four quarters and missed the mark once, the average surprise being 3.38%. The Zacks Consensus Estimate for BHLB’s 2025 earnings indicates an improvement of 14.5% while the same for revenues implies growth of 37.4% from the corresponding 2024 estimates. The consensus mark for BHLB’s earnings has moved 2.1% north in the past 60 days.
Farmers & Merchants Bancorp’s earnings outpaced estimates in each of the last four quarters, the average surprise being 17.49%. The Zacks Consensus Estimate for FMAO’s 2025 earnings indicates an improvement of 6.1% while the same for revenues implies growth of 7.1% from the corresponding 2024 estimates. The consensus mark for FMAO’s earnings has moved 3.4% north in the past 60 days.
Shares of Berkshire Hills Bancorp and Farmers & Merchants Bancorp have gained 15.9% and 14.8%, respectively, in the past year. However, Eagle Bancorp stock has lost 11.7% in the same time frame.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
AmEx Up 69% in Past Year: More Growth on the Horizon?
Shares of American Express Company (AXP - Free Report) have gained 69% in the past year compared with the industry’s 22.3% growth. The Finance sector and the S&P 500 composite index rallied 25% and 24.8%, respectively, in the same time frame. With a market capitalization of $220.2 billion, the average volume of shares traded in the last three months was 2.5 million.
American Express benefits from rising consumer spending, sustained travel demand, enhanced digital services and adequate cash generation abilities supporting investments and shareholder returns.
The leading globally integrated payments company with a Zacks Rank #3 (Hold) has a decent earnings surprise history. It beat earnings estimates in three of the trailing four quarters and missed the same once, the average surprise being 6.53%.
Image Source: Zacks Investment Research
Can AXP Retain the Momentum?
The Zacks Consensus Estimate for American Express’ 2025 earnings is pegged at $15.24 per share, indicating a 13.7% increase from the 2024 estimate. The estimate for revenues is $71.5 billion, implying 8.5% growth from the 2024 estimate.
American Express continues to experience robust revenue growth, largely driven by increasing discount revenues, which form a significant portion of its overall income. Rising consumer spending is fueling Card Member activity, thereby contributing to revenue expansion. Additionally, the resurgence in travel demand is expected to bolster service fees and other revenue streams. Over the long term, the company anticipates achieving revenue growth of 10%.
The company is strengthening its presence in the premium consumer market by offering enhanced membership benefits that address everyday expenses, borrowing needs, and travel and lifestyle requirements. Through strategic acquisitions and partnerships, American Express continues to enrich its card offerings and broaden its global footprint.
American Express remains committed to innovation, investing in new product launches and upgrades to existing offerings, which play a critical role in maintaining high Card Member retention. To stay competitive in the digital era, the company has enhanced its suite of digital solutions and services. Recognizing the increasing risks of cybercrime, American Express has also implemented robust fraud prevention measures to protect its customers.
The company's strong liquidity position is underscored by a healthy cash balance, sufficient to cover its short-term debt obligations. American Express's sufficient cash generation capabilities enable it to make significant investments in its business while also supporting shareholder returns through share repurchases and dividends. In March 2024, the company announced a 17% increase in its quarterly dividend. Moreover, it generated $8.3 million in net cash from operations during the first nine months of 2024.
Stocks to Consider
Some better-ranked stocks in the Finance space are Eagle Bancorp, Inc. (EGBN - Free Report) , Berkshire Hills Bancorp, Inc. (BHLB - Free Report) and Farmers & Merchants Bancorp, Inc. (FMAO - Free Report) . While Eagle Bancorp sports a Zacks Rank #1 (Strong Buy), Berkshire Hills Bancorp and Farmers & Merchants Bancorp currently carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Eagle Bancorp’s earnings surpassed estimates in two of the trailing four quarters and missed the mark twice, the average surprise being 12.38%. The Zacks Consensus Estimate for EGBN’s 2025 earnings indicates an improvement of 29.4% while the same for revenues implies growth of 6.3% from the corresponding 2024 estimates. The consensus mark for EGBN’s earnings has moved 8% north in the past seven days.
The bottom line of Berkshire Hills Bancorp beat estimates in three of the trailing four quarters and missed the mark once, the average surprise being 3.38%. The Zacks Consensus Estimate for BHLB’s 2025 earnings indicates an improvement of 14.5% while the same for revenues implies growth of 37.4% from the corresponding 2024 estimates. The consensus mark for BHLB’s earnings has moved 2.1% north in the past 60 days.
Farmers & Merchants Bancorp’s earnings outpaced estimates in each of the last four quarters, the average surprise being 17.49%. The Zacks Consensus Estimate for FMAO’s 2025 earnings indicates an improvement of 6.1% while the same for revenues implies growth of 7.1% from the corresponding 2024 estimates. The consensus mark for FMAO’s earnings has moved 3.4% north in the past 60 days.
Shares of Berkshire Hills Bancorp and Farmers & Merchants Bancorp have gained 15.9% and 14.8%, respectively, in the past year. However, Eagle Bancorp stock has lost 11.7% in the same time frame.