Why This 1 Finance Stock Could Be a Great Addition to Your Portfolio
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Building an investment portfolio from scratch can be difficult, especially if you're new to investing. It's easy to feel overwhelmed with so many different investment options out there, but focusing on stocks that are set to outperform the market over the next 12 months is an excellent place to start.
Now, let's break down why adding this one exceptional stock, highlighted below, to your portfolio could be a recipe for success.
Why You Should Pay Attention to American Express (AXP)
Founded in 1850, NY-based American Express Company is a diversified financial services company, offering charge and credit payment card products, and travel-related services worldwide. American Express and its main subsidiary – American Express Travel Related Services Company, Inc. (“TRS”) – are bank holding companies under the Bank Holding Company Act of 1956. The company offers business travel-related services through its non-consolidated joint venture, American Express Global Business Travel (the GBT JV).
On December 23, 2021, AXP was added to the Zacks Focus List at $162.47 per share. Shares have increased 70.2% to $276.52 since then.
Five analysts revised their earnings estimate higher in the last 60 days for fiscal 2024, while the Zacks Consensus Estimate has increased $0.08 to $13.14. AXP also boasts an average earnings surprise of 7.7%.
Additionally, American Express' earnings are expected to grow 17.2% for the current fiscal year.
Since stock prices respond to earnings estimate revisions, it can be very profitable to buy stocks with an increased earnings outlook. By buying a Focus List stock like AXP, then, you're likely getting into a company whose future earnings estimates will be raised, potentially leading to price momentum.
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American Express Company (AXP) : Free Stock Analysis Report