62.7 F
New York
Wednesday, October 21, 2020

American Express Company (NYSE:AXP) Stock is Soaring, Here is Why

Must read

ONEOK Inc. (NYSE:OKE) on the Path to Profitability

ONEOK Inc. (OKE) shares are trading at higher $28.92 and the avg recommendation for the stock is Moderate Buy, while the current analyst price...

The Unprecedented Rise of Mondelez International Inc. (NASDAQ:MDLZ)

Mondelez International Inc. (MDLZ) shares are trading at lower $56.98 and the avg recommendation for the stock is Strong Buy, while the current analyst...

The Forecast Just Changed on Sunrun Inc. (NASDAQ:RUN)

Sunrun Inc. (RUN) shares are trading at higher $62.58 and the avg recommendation for the stock is Moderate Buy, while the current analyst price...

Amazon.com Inc. (NASDAQ:AMZN) is Holding Steady

Amazon.com Inc. (AMZN) shares are trading at higher $3217.01 and the avg recommendation for the stock is Strong Buy, while the current analyst price...

American Express Company (AXP) shares are trading at higher $106.34 and the avg recommendation for the stock is Moderate Buy, while the current analyst price target stands at $104.68.

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 -7.55% while the S&P 500 is up 18.28%. 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.

Find out when AXP reaches critical levels. Subscribe to OracleDispatch.com Right Now by entering your Email in the box below.

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 2.63 and outstanding shares of 804.00M.

Company Outlook

AXP has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 3.58 million and more growth is possible in the weeks ahead. 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 85.40B 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.

Latest article

The Rejuvenation of Switchback Energy Acquisition Corporation (NYSE:SBE)

Switchback Energy Acquisition Corporation (SBE) shares are trading at lower $16.04. To add more color to this target, the company’s high over the last...

Futu Holdings Limited (NASDAQ:FUTU) Recent Earnings Shows Major Promise

Futu Holdings Limited (FUTU) shares are trading at higher $34.48 and the avg recommendation for the stock is Moderate Buy, while the current analyst...

The Unprecedented Rise of Ovintiv Inc. (NYSE:OVV)

Ovintiv Inc. (OVV) shares are trading at higher $9.55 and the avg recommendation for the stock is Moderate Buy. To add more color to...

Express Inc. (NYSE:EXPR) Finding Zero Support

Express Inc. (EXPR) shares are trading at lower $0.72 and the avg recommendation for the stock is Hold. To add more color to this...

Renewed Optimism is Surrounding The Macerich Company (NYSE:MAC)

The Macerich Company (MAC) shares are trading at lower $7.15 and the avg recommendation for the stock is Hold, while the current analyst price...