American Express (AXP) Stock: Wall Street Is Getting Bullish – Should You?

TLDR

• AXP stock is trading at about $351.96, up 1.42% on the day, with a market cap of about $240 billion.
• Q1 2026 EPS came in at $4.28, beating estimates of $4.01; Revenue rose 11.4% year over year to $14.21 billion
• FY2026 EPS guidance affirmed at $17.30-$17.90; Analysts expect $17.65 for the full year
• Millennials and Generation Z are now American Express’ fastest-growing customer group, fueling long-term growth
• The Wall Street consensus is Moderate Buy with an average price target of $366.95; Goldman Sachs targets $400

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American Express (AXP) stock is trading at around $351.96, and a new wave of analyst upgrades and institutional buying is putting it back in focus. The stock is about 9% below its 52-week high of $387.49 but well above its low of $288.34.

American Express Company, AXP

KJ Harrison & Partners opened a new position worth $1.21 million in the first quarter, acquiring 4,003 shares. Several other institutions also added to their holdings during this quarter. Institutional investors now own 84.33% of AXP shares.

The first quarter earnings report was clean. Amex reported EPS of $4.28, beating the consensus of $4.01 by $0.27. Revenue was $14.21 billion, up 11.4% year over year. The net margin was 15.13% and the return on shareholders’ equity was 33.95%.

Management reiterated full-year 2026 EPS guidance of $17.30 to $17.90. Analysts are currently placing a model at $17.65.

Wall Street has raised targets. Goldman Sachs It raised its price target from $360 to $400 and maintained a buy rating. Truist went from $360 to $375, also buy. Piper Sandler started at overweight and a goal of $396. The average price target across all analysts is $366.95, roughly 4% above the stock’s trading price today.

The consensus rating is a Moderate Buy, with two Strong Buy, nine Buy, eleven Hold, and one Sell out of 23 analysts tracking.

Young spenders are driving growth

One of the cleaner stories here is demographic. Millennials and Generation Z have become American Express’s fastest-growing customer group. This trend aligns with lifestyle spending — experiences, dining, and travel — which happen to be exactly the categories in which spending occurs. AMEX Premium cards collect points and privileges.

Younger consumers getting a premium card early tends to stick. As older generations pass on wealth over the coming decades, early brand loyalty could compound American Express’ favor for a long time.

Wall Street analysts expect profits to grow by 13% to 14% annually over the next three to five years. Even if you reduce that to 10% to account for economic bumps, add a 1.1% dividend yield and you get an annual total return of roughly 11%. At this pace, the Rule of 72 suggests that the investment doubles every six to seven years.

Valuation and dividends

AXP trades at less than 20 times 2026 earnings estimates. This is a reasonable multiple for the growth profile on offer. The P/E ratio is 1.45, and the beta is 1.04 – roughly in line with the market.

Recently declared a quarterly dividend of $0.95 per share, payable on August 10 to holders of record as of July 2. This works out to $3.80 per year, for a return of about 1.1%.

Its 50-day moving average is $322.50 and its 200-day moving average is $333.27. The stock is trading above both.

Amex’s upcoming earnings report will give investors the next data point on whether the first-quarter defeat was a one-off or the start of a trend.