Is American Express Company (AXP) the Best Dow Stock?

We recently published a list of The Best and Worst Dow Stocks. In this article, we are going to take a look at where American Express Company (NYSE:AXP) stands against other Dow stocks.

The Dow Jones Industrial Average is a benchmark index of the top 30 companies in the US. It represents the strength of the US economy and carries great historical significance as well.

It also acts as a reference point for analysts and investors. However, not all stocks within this elite group of companies perform equally. While some thrive on innovation and economic boom, others struggle due to various setbacks and economic trends.

We decided to break down the index and find out the best and worst stocks, looking at what was making them perform unexpectedly this year.

Methodology

In order to come up with our ranking of the best and worst Dow stocks, we first assigned a rank to each stock based on the number of hedge funds holding the stock. We then looked at the short interest in each stock and assigned the top rank to the company with the least short interest.

We then combined the two ranks to see which stock was the best on average. The list is in ascending order, with the best stock taking the number one spot.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

A close-up view of a payment terminal, capturing the sophistication of a payment network.

American Express Company (NYSE:AXP)

Number of Hedge Fund Holders: 71

Short Interest as of Apr 30, 2025: 1.19%

American Express Company (NYSE:AXP) is an integrated payments company. The company operates in International Card Services, U.S. Consumer Services, Global Merchant and Network Services, and Commercial Services segments. Its products and services consist of charge card, network services, credit card, banking, travel and lifestyle services, and expense management products and services.

The firm recently completed its acquisition of Center, a software company that helps manage expenses for small and medium-sized businesses. This acquisition will merge American Express Company’s (NYSE:AXP) corporate and small business cards with the Center’s expense management technology. With this integration, experiences and value for commercial customers will be improved.

The company has also reaffirmed its full-year guidance for 2025. As per the guidance, management anticipates revenue growth of 8% to 10% along with the EPS ranging between $15 to $15.50. Management highlighted that these estimates assume a peak unemployment rate of 5.7%. CEO Stephen Squeri mentioned that early Q2 spending trends are reflecting first-quarter levels in all spending categories and customer segments. CFO Christophe Le Caillec highlighted consistency in consumer spending trends and credit performance.

Overall, AXP ranks 18th on our list of best and worst Dow stocks. 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 time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than AXP but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. This article is originally published at Insider Monkey.