We’re Adding to and Lifting Our Rating on This Holding

Symbol	Transaction Type	# Shares Traded	Recent Price $	Shares Owned After Trade	% Portfolio
AXP	Buy	45	308	700	3.65

After you receive this Alert, we will buy 45 shares of American Express (AXP) at or near $308. Following the trade, AXP shares will account for roughly 3.65% of the Pro Portfolio’s assets.

We are putting a small amount of capital to work in American Express for a confluence of reasons, with the end result rounding out our position in the shares. First and foremost is the pullback in the shares over the last few weeks, which now looks to close the post-earnings gap that was created in the chart over a month ago.

Second, we are reading that Fanatics is planning to launch its first credit card later this year with American Express, which meshes with American Express’s efforts to leverage sporting events and the larger industry to drive not only awareness but membership.

In this case, American Express will be the payment platform that will power the Fanatics card and become the presenting sponsor of Fanatics Fest, the signature event put on by Fanatics. We see this building on the company’s payments deal with the NFL and one that will have it release an NFL Extra Points American Express credit card later this year. All in all a nice win for Amex.

Third, we are seeing some impressive April-quarter comp sales from the likes of TJX Companies (TJX), up 6.0% year over year, and Target (TGT), up 5.6%, and let’s not forget the analogous monthly adjusted comp sales from Costco (COST). These figures point to the consumer continuing to spend in the face of higher energy and related prices. What percentage of that, if any, is related to pull-forward spending, we’ll come to know in the weeks ahead.

However, wealthier consumers continue to open their wallets, as evidenced by Toll Brothers’ (TOL) quarterly results last night. The average price of homes it completed sales on during the April quarter topped the $1 million mark for the first time since mid-2024. The average delivered price per home Toll now expects for this year is between $985,000 and $1 million, up from a previous projection for $970,000 to $990,000. That’s a nice data point for Amex’s clientele, especially the ones it is courting with the current Platinum Card refresh.

To be clear, that price point offset the decline in the number of homes delivered for the reported quarter. Toll sees 2026 deliveries totaling more than 10,400, better than its prior guidance for at least 10,300, but it’s still well below the 11,292 delivered in 2025. Point being, we have yet to see the turn in the demand for housing supply volumes.

Our Amex Price Target

Our price target for American Express has been predicated upon two key factors, which include the expected increase in average fee per card over the coming quarters and the rise in the number of cards in force as the Platinum Card Refresh takes hold. We will continue to monitor consumer spending and if need be, revisit our current $400 price target. Based on the current risk/reward trade-off in the shares, we will upgrade our rating to a One from Two.

While our $400 price target is above the current $360 consensus, we are by no means the highest price target on Wall Street. That figure is around $450, but we also see a number of targets at $415 or higher.

More Pro Portfolio:

(Please note that we are looking to execute these trades at or near the share price mentioned above. Once the trade is completed, subscribers can see the trade’s executed price here. Be sure to toggle the chart to sort by Purchase Date.)

At the time of publication, TheStreet Pro Portfolio was long AXP, COST, and TJX.