American Express Slipped 2% Last Week. Here’s What Investors Need to Know

Key Stats for American Express Stock

• Past-Week Performance: -2.07%
• 52-Week Range: $220 to $387
• Valuation Model Target Price: $384
• Implied Upside: 5.2% over ~2.0 years

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What Happened?

American Express stock (AXP) fell about 2% over the past week, pulling back after trading near recent highs earlier in the week and finishing around $357 per share.

Shares moved lower after President Donald Trump publicly called for a one-year 10% cap on credit card interest rates, a proposal that sparked a sharp selloff across credit card issuers and payments stocks.

While the proposal would likely require new legislation to take effect, the headline alone pressured the sector as investors reacted to potential regulatory risk.

American Express declined alongside other major financial and payments companies, including Capital One, Citigroup, Visa, and Mastercard, reinforcing that the move was driven by sector-wide headlines rather than company-specific developments.

With AXP trading close to its 52-week high near $387 prior to the announcement, the policy news accelerated profit-taking after a strong run, even though there were no earnings updates or operational changes from the company during the week.

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Is American Express Fairly Valued Right Now?

Under the valuation model shown, the stock is modeled using:

• Revenue Growth (CAGR): 9.1%
• Operating Margins: 26.9%
• Exit P/E Multiple: 17.6x

Based on these inputs, the model estimates a target price of about $384, implying roughly 5.2% total upside from the recent share price over the next 2.0 years.

Looking ahead, performance depends on whether American Express continues generating higher spending per card through its premium customer base, particularly in travel and entertainment categories that drive stronger fee revenue.

Expense discipline also matters, as margins benefit when rewards and marketing costs grow more slowly than billed business.

Stable credit performance remains central, since maintaining low charge-offs allows earnings to scale without higher loss provisions, supporting returns even with limited valuation upside.

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