Core Viewpoint - American Express (AXP) has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive trend in earnings estimates, which is a significant factor influencing stock prices [1][2]. Earnings Estimates and Stock Price Movement - The Zacks rating system highlights the strong correlation between changes in earnings estimates and near-term stock price movements, making it a valuable tool for investors [2][3]. - Institutional investors utilize earnings estimates to determine the fair value of stocks, and their trading activities based on these estimates can lead to significant price movements [3]. Business Improvement Indicators - The upgrade in ratings and rising earnings estimates suggest an improvement in American Express's underlying business, which could lead to an increase in stock price as investors respond positively [4]. Importance of Earnings Estimate Revisions - Tracking earnings estimate revisions is crucial for investment decisions, and the Zacks Rank system effectively captures these revisions to guide investors [5]. - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have averaged a +25% annual return since 1988 [6]. Specific Earnings Estimates for American Express - For the fiscal year ending December 2025, American Express is expected to earn $15.39 per share, with a 1.1% increase in the Zacks Consensus Estimate over the past three months [7]. Zacks Rating System Overview - The Zacks rating system maintains a balanced distribution of "buy" and "sell" ratings across its universe of over 4,000 stocks, ensuring that only the top 20% of stocks receive a "Strong Buy" or "Buy" rating [8][9]. - The upgrade of American Express to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [9].