Shares of American Express Company AXP 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%.

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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, Berkshire Hills Bancorp, Inc. BHLB and Farmers & Merchants Bancorp, Inc. FMAO. 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.

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American Express Company (AXP) : Free Stock Analysis Report

Eagle Bancorp, Inc. (EGBN) : Free Stock Analysis Report

Berkshire Hills Bancorp, Inc. (BHLB) : Free Stock Analysis Report

Farmers & Merchants Bancorp Inc. (FMAO) : Free Stock Analysis Report

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