Why Is American Express Stock Tuesday?

Core Viewpoint - American Express has renewed a multiyear agreement with the NBA, enhancing its brand visibility and engagement with sports fans, which may positively influence investor sentiment [1][8]. Agreement Details - The new agreement includes increased investment in the WNBA and USA Basketball, positioning American Express as the entitlement partner for NBA Tip-Off and NBA G League Tip-Off [2]. - A connected member program will be launched with NBA ID, offering exclusive benefits to American Express Card Members and NBA ID members [2]. Earnings Performance - For the quarter ending January 30, American Express reported a revenue growth of 10% year-over-year to $18.98 billion, exceeding analyst expectations of $18.92 billion [4]. - The revenue increase was driven by higher Card Member spending, increased net interest income, and strong card fee growth [4]. Future Projections - American Express anticipates full-year revenue between $78.73 billion and $79.45 billion, reflecting a 9%-10% year-over-year increase, surpassing the analyst consensus estimate of $78.62 billion [5]. - The company expects earnings per share (EPS) in the range of $17.30 to $17.90, compared to the analyst consensus of $17.41 [5]. Technical Analysis - American Express shares are trading 2.2% above the 20-day simple moving average (SMA) and 2.4% above the 100-day SMA, indicating longer-term strength [6]. - The stock has increased by 17.97% over the past 12 months and is closer to its 52-week highs [6]. Analyst Outlook - The stock currently holds a Hold rating with an average price target of $340.80, reflecting a fair P/E multiple and positive growth prospects [12]. - Recent analyst actions include a lowered price target from Evercore ISI Group to $393 and from Truist Securities to $400 [14]. Quality and Momentum - American Express has a quality score of 77.04, indicating strong fundamentals, while the momentum score of 69.4 suggests positive price trends, albeit not exceptionally strong [15].