Can American Express Company (AXP) Stock Benefit From Improving Inflation and Interest Rate Visibility?

We recently compiled a list of the 10 Most Undervalued Dow Stocks to Buy According to Wall Street Analysts. American Express Company (NYSE:AXP) is among the most undervalued stocks.

TheFly reported on June 30 that BTIG increased its price target for AXP to $324 from $285 while maintaining a Sell rating on the shares. The firm updated its forecasts and valuation targets across the specialty finance sector ahead of the second-quarter earnings season. BTIG noted that the revised targets reflect its expectations for where the stocks could trade by June 2027. The firm also highlighted that earnings potential for several companies in the group could improve as inflation uncertainty declines and expectations around Federal Reserve interest rate decisions become clearer.

Can American Express Company (AXP) Stock Benefit From Improving Inflation and Interest Rate Visibility?

In a separate move, on June 25, American Express Company (NYSE:AXP) announced results from its company-run 2026 Dodd-Frank Act Stress Test, confirming that the company will maintain its current Stress Capital Buffer requirement of 2.5% through September 30, 2027. The company stated that the results demonstrate the strength of its balance sheet and business model while supporting its capital management strategy. AXP also confirmed its previously announced 16% increase in its quarterly common stock dividend to $0.95 per share beginning with the first-quarter 2026 dividend. Over the 12 months ended March 31, 2026, the company returned $8.7 billion to shareholders through share repurchases and dividends.

American Express Company (NYSE:AXP) is a global financial services company providing payment cards, travel services, and merchant solutions through one of the world’s largest payment networks.

While we acknowledge the risk and 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 time frame. If you are looking for an AI stock that is more promising than AXP and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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