Why American Express (AXP) is a Top Momentum Stock for the Long-Term

American Express (AXP) is highlighted as a top momentum stock, achieving a Zacks Momentum Style Score of 'A' and a VGM Score of 'B', despite its Zacks Rank #3 (Hold). Shares have advanced 11.6% over the past four weeks, underpinned by six upward revisions to fiscal 2025 earnings estimates in the last 60 days, raising the Zacks Consensus Estimate to $15.27 per share and demonstrating an average earnings surprise of +4.6%. This strong momentum and positive earnings revision trend position AXP as a notable consideration for investors.

Analysis

American Express (AXP) is demonstrating significant positive momentum, supported by both technical price action and improving analyst sentiment. The company's shares have appreciated 11.6% over the past four weeks, a trend reflected in its top-tier Zacks Momentum Style Score of 'A'. This performance is underpinned by a favorable shift in earnings expectations for fiscal 2025, with six analysts issuing upward revisions in the last 60 days. Consequently, the Zacks Consensus Estimate for 2025 has risen to $15.27 per share. Historically, the company has shown a capacity to outperform, boasting an average earnings surprise of +4.6%. Despite these strong momentum indicators and a solid 'B' VGM score, the stock retains a neutral Zacks Rank of #3 (Hold), suggesting a need to balance the current upward trend against broader fundamental metrics. AXP's closed-loop network, which differentiates it from peers like Visa and Mastercard, remains a core strategic advantage, facilitating direct customer relationships and data insights.

Key Decisions for Investors

• Momentum-focused investors may find the stock's 'A' Momentum Score and recent 11.6% price increase compelling, especially as it is supported by positive earnings estimate revisions.
• Investors should weigh the strong near-term momentum signals against the neutral Zacks #3 (Hold) rating, which suggests that underlying fundamentals may not fully align with the bullish price action.
• Monitor upcoming earnings reports and analyst estimate revisions closely, as the positive revision trend is a key pillar of the current investment thesis and its continuation is critical for sustained performance.