American Express Company (AXP) shares are trading at lower $99.05 and the avg recommendation for the stock is Moderate Buy. while the current analyst price target stands at $104.72.
To add more color to this target, the company’s high over the last year is $138.13 and the low is $67.00. Over the last 52 weeks, AXP is down -16.43% while the S&P 500 is up 19.49%. The catalyst for this interesting swing was the company’s recent earnings report.
A Notable Earnings Report
In the last quarter, AXP reported a profit of $1.88 billion. American Express Company also saw revenues increase to $2.43 billion. In addition, AXP has free cash flow of -$778.0 million as of 06-2020.
AXP booked profit margins of 9.50%, its Return on Equity (ROE) is 17.90%, and its Return on Assets is 2.10%. All told, it is clear that, AXP needs to be on your watchlist.
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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. AXP has a short ratio of 1.85 and outstanding shares of 804.00M.
AXP has seen increased volume after this news and investors are putting their support behind the value proposition. Traders will also note the company’s earnings per share came in at 4.83. Investors should also keep an eye on sector updates as AXP has historically followed its peers on positive news.
All told, American Express Company AXP has strung together solid data and demonstrated underlying fundamentals. At its current valuation, AXP represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.
American Express Company AXP is now commanding a market cap of 80.22B and a float of 651.50M. AXP is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of AXP stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in AXP, either long or short, and we have not been compensated for this article.