American Express Co (NYSE:AXP) will report its second-quarter earnings on Friday. As the company reports before market hours, Wall Street expects $3.25 in EPS and $16.6 billion in revenues.

Catalysts Driving Stock Surge

The stock is up 42.52% over the past year, 33.43% YTD. Key catalysts driving American Express stock include:

• Focus on Millennial and Gen Z Demographics: Targeting these groups for new card acquisitions and profitability.
• Digital Transformation Investments: Enhancing digital payment solutions, including digital wallets and tokenization.
• Strong Financial Performance: Significant revenue and earnings growth, with Q1 FY24 revenue up 11% year-over-year and earnings per share increasing by 39% to $3.33.
• Record New Card Acquisitions: 12.2 million new cards in 2023, with 3.4 million in Q1 FY24, expanding the total network to over 140 million.
• Resurgence in Travel Demand: Positioning to benefit from increased travel demand in 2024 and beyond.

What Wall Street Will Be Focusing On

As American Express reports Q2 earnings tomorrow, Wall Street analysts will focus on key metrics such as revenue and earnings growth, comparing them to previous quarters. They will be interested in the number of new card acquisitions and customer engagement trends, particularly among millennials and Gen Z.

Updates on the company's digital transformation initiatives, including digital payment solutions and tokenization, will be closely watched.

Analysts will also look for signs of increased travel-related spending, expense management efficiency, and forward-looking guidance from CEO Stephen Squeri.

Let's look at what the charts indicate for American Express stock, and how the stock currently maps against Wall Street estimates.

Strongly Bullish Trend Ahead Of Q2 Earnings

American Express is exhibiting a strongly bullish trend, as its share price is above the 5, 20, and 50-day exponential moving averages, indicating slight buying pressure.

Chart created using Benzinga Pro

Currently, AXP is trading at $249.96, well above its 8-day simple moving average of $243.45, which is a bullish signal.

Similarly, the stock is above its 20-day SMA of $236.79 and its 50-day SMA of $236.08, both suggesting bullish momentum. The share price also surpasses the 200-day SMA of $202.50, reinforcing the bullish outlook.

Chart created using Benzinga Pro

The Moving Average Convergence Divergence (MACD) indicator stands at 4.09, further suggesting a bullish trend for American Express.

However, the Relative Strength Index (RSI) is at 75.88, indicating that the stock is overbought.

The Bollinger Bands also provide bullish signals, with the 25-period bands ranging from $219.57 to $249.58. Overall, the technical indicators support a bullish stance on AXP despite the overbought RSI.

Read Also: How To Earn $500 A Month From American Express Stock Ahead Of Q2 Earnings

Ratings & Consensus Estimates: The consensus analyst rating on American Express stock stands at a Buy currently with a price target of $216.03. Compass Point, Jefferies, and Barclays released their most recent ratings for American Express Co on July 16, 2024, and July 9, 2024. They have set an average price target of $239.33, implying a -4.40% downside for the stock.

AXP Price Action: American Express stock was trading at $250.34 at the time of publication.

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