Since February 2026, American Express has been in a holding pattern, posting a small loss of 3.2% while floating around $338.50. The stock also fell short of the S&P 500’s 8.3% gain during that period.

Is now the time to buy AXP? Or does the price properly account for its business quality and fundamentals? Find out in our full research report, it’s free.

Why Do Investors Watch American Express?

Recognizable by its iconic green logo and the slogan "Don't leave home without it," American Express (NYSE: AXP) is a global payments company that issues credit and charge cards, processes merchant transactions, and offers travel and lifestyle benefits to consumers and businesses.

Three Positive Attributes:

1. Long-Term Revenue Growth Shows Strong Momentum

A company’s long-term sales performance is one signal of its overall quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul.

Thankfully, American Express’s 13.2% annualized revenue growth over the last five years was solid. Its growth surpassed the average financials company and shows its offerings resonate with customers.

2. EPS Increasing Steadily

Analyzing the long-term change in earnings per share (EPS) shows whether a company’s incremental sales were profitable — for example, revenue could be inflated through excessive spending on advertising and promotions.

American Express’s solid 13.9% annual EPS growth over the last five years aligns with its revenue performance. This tells us it maintained its per-share profitability as it expanded.

3. Stellar ROE Showcases Lucrative Growth Opportunities

Return on equity, or ROE, tells us how much profit a company generates for each dollar of shareholder equity, a key funding source for financial firms. Over a long period, financial firms with high ROE tend to compound shareholder wealth faster through retained earnings, buybacks, and dividends.

Over the last five years, American Express has averaged an ROE of 33%, exceptional for a company operating in a sector where the average shakes out around 10% and those putting up 25%+ are greatly admired. This shows American Express has a strong competitive moat.

Final Judgment

There are definitely things to like about American Express. With its shares trailing the market in recent months, the stock trades at 18.1× forward P/E (or $338.50 per share). Is now a good time to buy? See for yourself in our in-depth research report, it’s free.

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