If you're a beginner investor, the idea of creating a portfolio from the ground up can feel like an impossible goal to achieve. That's why you should start by looking at stocks that are set to beat the market over the next 12 months, a strategy that's been proven to generate strong returns.

Now, let's break down why adding this one exceptional stock, highlighted below, to your portfolio could be a recipe for success.

Founded in 1850, NY-based American Express Company is a diversified financial services company, offering charge and credit payment card products, and travel-related services worldwide. AmEx earns revenue through both transaction fees and interest income, supported by a closed-loop payment network. Unlike open-loop peers (e.g., Visa or Mastercard), its integrated system allows AmEx to engage directly with both merchants and cardholders. This setup enables deeper customer insights, targeted marketing, and strong customer loyalty.

On December 23, 2021, AXP was added to the Zacks Focus List at $162.47 per share. Shares have increased 94.37% to $316.03 since then.

Six analysts revised their earnings estimate upwards in the last 60 days for fiscal 2025. The Zacks Consensus Estimate has increased $0.06 to $15.26. AXP boasts an average earnings surprise of 4.6%.

Additionally, American Express' earnings are expected to grow 14.3% for the current fiscal year.

Since stock prices respond to earnings estimate revisions, it can be very profitable to buy stocks with an increased earnings outlook. By buying a Focus List stock like AXP, then, you're likely getting into a company whose future earnings estimates will be raised, potentially leading to price momentum.

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American Express Company (AXP) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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