Valued at a market cap of $205.7 billion, American Express Company (AXP) is a leading integrated payments company headquartered in New York. Its products and services include credit cards, charge cards, banking, and other payment and financing products, network services, expense management products and services, and travel and lifestyle services. 

This credit services giant has outpaced the broader market over the past 52 weeks. Shares of AXP have surged 28.8% over this time frame, while the broader S&P 500 Index ($SPX) has gained 21.9%. However, on a YTD basis, the stock is down marginally, lagging behind SPX’s 7.8% return. 

Narrowing the focus, AXP has underperformed the iShares U.S. Financial Services ETF’s (IYG) 30.7% rise over the past 52 weeks and 9.5% uptick on a YTD basis. 

On Jul. 18, shares of AXP tumbled 2.4% despite delivering better-than-expected Q2 results. The company’s total revenue net of interest expense grew 9.3% year-over-year to a record $17.9 billion, with non-interest revenues up 8.5% and net interest income up 12.3%. The top-line figure exceeded the consensus estimates by 1%. Moreover, on the earnings front, its adjusted EPS of $4.08 improved 16.9% from the year-ago quarter, topping Wall Street estimates by 5.7%. 

The strong performance was supported by record card member spending and robust demand for the company’s premium products. Additionally, AXP reaffirmed its fiscal 2025 guidance, expecting revenue growth of 8% to 10%, and EPS to be between $15 and $15.50. 

For the current fiscal year, ending in December, analysts expect AXP’s EPS to grow 14.3% year over year to $15.26. The company’s earnings surprise history is promising. It topped the consensus estimates in each of the last four quarters. 

Among the 29 analysts covering the stock, the consensus rating is a "Moderate Buy” which is based on eight “Strong Buy,” two "Moderate Buy,” 17 “Hold,” and two “Strong Sell” ratings. 

This configuration is less bullish than a month ago, with nine analysts suggesting a “Strong Buy” rating and one recommending “Strong Sell.”

On Jul. 21, John Pancari from Evercore Inc. (EVR) maintained a "Hold" rating on AXP with a price target of $330, implying a 12% potential upside from the current levels. 

The mean price target of $321.38 represents a 9% premium from AXP’s current price levels, while the Street-high price target of $375 suggests an ambitious upside potential of 27.2%.