American Express stock soars to all-time high of $307.83

Published 15/01/2025, 15:46
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In a remarkable display of financial vigor, American Express (NYSE:AXP) stock has reached an all-time high, touching a price level of $307.83. With a substantial market capitalization of $215.5 billion and a solid financial health score of "GOOD" according to InvestingPro analysis, the company appears slightly overvalued at current levels. This milestone underscores a period of robust growth for the company, which has seen its stock value surge by an impressive 66.8% over the past year, supported by healthy revenue growth of 8.9% and a P/E ratio of 22. Investors have shown increasing confidence in American Express's business model and its ability to generate value, propelling the stock to new heights and setting a record that reflects the company's strong performance in the competitive financial services sector. For deeper insights into AXP's valuation and growth prospects, InvestingPro subscribers can access 12 additional investment tips and comprehensive financial analysis.

In other recent news, American Express has experienced several significant developments. RBC Capital Markets raised its stock target for the company to $330, reflecting confidence in its revenue durability and earnings per share (EPS) growth prospects. This adjustment comes amidst a series of analyst reviews, including an initiation of coverage by Truist Securities with a Buy rating, citing strengths such as a dedicated high-end customer base and expansive international operations.

Contrarily, Compass Point revised the company's price target down to $315, while maintaining a neutral stance. This adjustment came despite an increase in core earnings per share (EPS) estimates for 2024 through 2026. The company reported robust third-quarter earnings with an EPS of $3.49 and revenues totaling $16.6 billion, an 8% year-over-year increase.

In terms of regulatory news, the Consumer Financial Protection Bureau (CFPB) has taken measures against American Express for illegal practices related to credit card rewards programs. The company also disclosed its U.S. Consumer and Small Business Card Member loan delinquency and write-off statistics, providing insight into the credit performance of the company's lending portfolios.

These recent developments reflect the dynamic changes within the financial industry and provide investors with a snapshot of American Express's current state and future prospects.

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