American Express Co. (NYSE:AXP) has seen a significant boost in its quality ranking, climbing from 52.17 to 73.15 as of the latest Benzinga Edge Stock Rankings, reflecting a robust 20.98-point increase. This comes amid an 11.7% return logged by Warren Buffett from his second-largest holding, AXP, in the second quarter.
Check out AXP stock price here.
What Does Quality Ranking Improvement Mean For AXP?
This improvement, detailed in the recent Quality Percentile Report, underscores the company’s enhanced operational efficiency and financial health, evaluated through historical profitability metrics and fundamental strength indicators.
The surge aligns with the stock’s strong performance across momentum at the 78.00th percentile, growth at the 57.67th percentile, as per the latest data, with price trends indicating a positive outlook across short, medium, and long terms.
Additional performance details are available here.
AXP Delivers Better-Than-Expected Q3 Results
The quality leap follows American Express's impressive third-quarter 2025 earnings, where revenue grew 11% year-over-year to $18.43 billion, surpassing the $18.05 billion analyst consensus.
Adjusted EPS of $4.14 also topped expectations of $4.00, driven by a 9% rise in Card Member spending to $421.0 billion and an 18% surge in net card fees to $2.55 billion.
CEO Stephen J. Squeri highlighted the successful launch of refreshed Platinum Cards, doubling new account acquisitions, prompting an upward revision of the 2025 revenue outlook to $71.88 billion-$72.54 billion and EPS guidance to $15.20-$15.50.
Analyst upgrades further bolster the stock's trajectory, with price targets rising from an average of $314.88 to $373.33 among recent ratings, suggesting a 4.30% upside.
See Also: Mounjaro Maker Eli Lilly Jumps In Quality Despite Trump-Fueled Price Cut Fears
Warren Buffett Makes More Than 11% From American Express In Q2
Buffett's Berkshire Hathaway Inc. (NYSE:BRK) (NYSE:BRK), holding 151.61 million shares, has reaped a 11.7% or $5.66 billion gain in the second quarter, reinforcing confidence in AXP's financial stability.
Despite a 10% increase in total expenses to $13.3 billion, provisions for credit losses dropped to $1.3 billion, signaling improved risk management.
Shares of AXP were trading 0.36% higher in premarket on Monday. It has gained 19.81% on a year-to-date basis and 31.71% over the year.
On Monday, the futures of the S&P 500, Dow Jones, and Nasdaq 100 indices were trading higher.
Meanwhile, on Friday, the S&P 500 index ended 0.79% higher at 6,791.69, whereas the Nasdaq 100 index rose 1.04% to 25,358.16. On the other hand, Dow Jones advanced 1.01% to end at 47,207.12.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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