American Express Company (NYSE:AXP) stock is up on Tuesday as the company is deepening its partnership with the NBA.
This renewed multiyear agreement expands American Express’s presence across the league, which may be contributing to positive investor sentiment.
Evercore ISI Group analyst John Pancari maintained an In-Line rating on American Express. Pancari lowered his price forecast to $393 from $400.
The Agreement
Under the new agreement, American Express will increase its investment in the WNBA and add USA Basketball, including both Men’s and Women’s National Teams.
The deal also positions American Express as the entitlement partner for NBA Tip-Off and NBA G League Tip-Off, enhancing its visibility and engagement with basketball fans.
The partnership will launch a connected member program with NBA ID, offering exclusive benefits to American Express Card Members and NBA ID members.
This includes special access to events like the NBA All-Star 2026, where Card Members can enjoy unique experiences and merchandise opportunities.
The broader market is experiencing mixed performance today, with the S&P 500 up 0.07% while the Nasdaq is slightly down by 0.03%. American Express’s gains align with the positive movement in the Consumer Discretionary sector, which is up 1.16%, indicating that the stock is moving in tandem with broader market trends.
Recent Earnings
On Jan. 30, the company reported quarterly revenue (net of interest expense) growth of 10% year-over-year to $18.98 billion, topping the analyst consensus estimate of $18.92 billion.
The revenue increase was primarily driven by higher Card Member spending, increased net interest income supported by growth in revolving loan balances, and strong card fee growth.
American Express expects full-year revenue of $78.73 billion-$79.45 billion, representing a 9%-10% year-over-year increase, compared to the analyst consensus estimate of $78.62 billion.
The company expects EPS of $17.30-$17.90, compared with the analyst consensus of $17.41.
Technical Analysis
American Express is currently trading 2.2% above its 20-day simple moving average (SMA) and 2.4% above its 100-day SMA, demonstrating longer-term strength. Shares have increased 17.97% over the past 12 months and are currently positioned closer to their 52-week highs than lows.
The RSI is at 48.86, which is considered neutral territory, suggesting that the stock is neither overbought nor oversold. Meanwhile, MACD is above its signal line, indicating bullish momentum.
The combination of neutral RSI and bullish MACD suggests mixed momentum.
- Key Resistance: $370.00
- Key Support: $350.50
The renewed partnership with the NBA enhances American Express’s brand visibility and engagement with a key demographic of sports fans. This strategic move is expected to drive customer loyalty and potentially increase transaction volumes, which are vital for the company’s growth.
Earnings & Analyst Outlook
American Express Company is slated to provide its next financial update on April 16, 2026.
- EPS Estimate: $3.99 (Up from $3.64 YoY)
- Revenue Estimate: $18.62 billion (Up from $16.97 billion YoY)
- Valuation: P/E of 23.4x (Indicates fair valuation)
Analyst Consensus & Recent Actions: The stock carries a Hold Rating with an average price target of $340.80. Recent analyst moves include:
- Evercore ISI Group: In-Line (Lowers Target to $393.00) (Feb. 10)
- Truist Securities: Buy (Lowers Target to $400.00) (Feb. 2)
- JP Morgan: Neutral (Lowers Target to $375.00) (Feb. 2)
Valuation Insight: While the stock trades at a fair P/E multiple, the consensus and rising estimates suggest analysts view the growth prospects as justification for the current valuation.
Benzinga Edge Rankings
Below is the Benzinga Edge scorecard for American Express, highlighting its strengths and weaknesses compared to the broader market:
- Quality: 77.04 — The stock exhibits strong fundamentals, indicating a solid business model.
- Momentum: 69.4 — The stock is showing positive price trends, although it is not in the strongest category.
The Verdict: American Express’s Benzinga Edge signal reveals a solid quality ranking, suggesting a healthy business foundation. While the momentum score indicates positive trends, it is not exceptionally strong, suggesting cautious optimism for investors.
AXP Price Action: American Express shares were up 2.12% at $367.27 at the time of publication on Tuesday, according to Benzinga Pro data.
Photo via Shutterstock
Photo via Shutterstock