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We recently compiled a list of the 10 Mega-Cap Stocks That Could Continue Surging Post 52-Week Highs. In this article, we are going to take a look at where American Express Company (NYSE:AXP) stands against the other mega-cap stocks.
The US stock markets have gone up leading up to the day of President Donald Trump's inauguration. All the major indices are set to continue their optimism from last week, when the Dow, the S&P, and the Nasdaq all reported gains of over 3.7%.
Even though the S&P had hardly moved from its early November levels when the election happened, many mega-cap stocks continue to register 52-week highs. We looked at some of these stocks and why they are expected to continue surging up with the earnings season already underway.
To come up with our list of 10 mega-cap stocks that could continue surging post 52-week highs, we only considered stocks that have recently hit their 52-week highs and have a market cap of at least $150 billion.
A close-up view of a payment terminal, capturing the sophistication of a payment network.
American Express Company (NYSE:AXP)
American Express Company is a worldwide financial services provider that operates through commercial services, consumer services, and other segments. The company is in the spotlight as its shares hit a 52-week high indicating strong investor optimism.
AXP's Q4 earnings report will be released on 24th Jan. Revenue growth is projected to be 9% while EPS is expected to grow by 16%. The market seems worried about the company due to higher credit card charge-offs and an unstable economy in light of the presidential elections. However, the company serves customers who keep spending even during economic depressions, helping it strengthen its moat.
The company’s expenses are well managed too. It has a great return on equity at over 34%. Moreover, the company’s shares have soared over 70% in the last year, which could continue well into 2025.
Overall AXP ranks 5th on our list of the mega-cap stocks that could continue surging post 52-week highs. While we acknowledge the potential of AXP as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as AXP but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article was originally published at Insider Monkey.