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American Express (AXP-N)
107 watching
NYSE:AXP
156.75
0.75
(0.48%) 1d
Financials
Technical Analysis
Buy, Sell or Hold?
Dec 2, 2022, 9:03 pm
0
COMMENT
It's a good example of reporting a good number and guiding up, and yet the market doesn't like it, because it expects a recession soon and rates keep going up. It's doesn't matter if people are using their AmEx card a lot in traveling and buying luxury goods. The market thinks this will slow down a lot and is penalizing the company for being the travel and luxury sector.
investment companies / funds
$140.040
Unknown
BUY
Amex's loan loss provisions increased by $200 million, more than the street expected. AXP caters to the high-end consumer who is not totally immune to a downturn if that happens. These stocks are hard to own, but Amex has done really well with 24% revenue growth in Europe; travel and and entertainment was up 57%. It's performed well vs. other financials. He'll continue to own it.
investment companies / funds
BUY
It's a well-run business. Management is already absorbing a potential economic slowdown in its growth projection; they know it's happening. They said that consumers are out and about (and spending). Trades at only 13x earnings. Earnings will accelerate and they have a diversified consumer base.
investment companies / funds
BUY
They report Friday. Amex is best in class. He expects a good quarter.
investment companies / funds
BUY
Boasts 30% net revenue growth. The consumer is still doing well.
investment companies / funds
TOP PICK
AXP has deployed cash well by buying back shares and raising their dividend. Warren Buffet last bought AXP in 1998, owning 11%, but without adding another share, he now owns 20% because of ongoing share buybacks. Trades have declined from recession fears and business travel is down. However, AXP is consistently profitable through thick and thin. Great cash flow yield. (Analysts’ price target is $178.00)
investment companies / funds
BUY
It reports Friday. It was just downgraded, but he expects it to do well because of strong European travel and strong consumer spending in general. Why all the negatives?
investment companies / funds
BUY
Allan Tong’s Discover Picks In fact, when AmEx reported its Q1 2022 in mid-April, it stated a 42% rise in business travel spending year-over-year and 121% in travel and entertainment spending. That T&E spend in March matched pre-pandemic levels. Further, sales leapt 29% year-over-year $11.8 billion, wiping out pandemic declines. Card-member spending fueled this surge and it made record monthly volumes in March. Its Delta Air Lines card has made all-time highs in terms of accounts, while its platinum cards also hit record numbers in Q1. Card fees grew 16% year-over-year with three million new cards added. The EPS came in at $2.18, well above the expected $1.87. Management forecast 18% to 20% revenue growth for the full year. “People are looking to get out there and travel,” sais CEO Stephen Squeri on his conference call. Read Summer stocks fun or summertime blues? 3 stocks to consider this summer for our full analysis.
investment companies / funds
COMMENT
It's been slaughtered unfairly. Their earnings smashed estimates. Shares have slid, but that has nothing to do with AmEx, but the bond market.
investment companies / funds
BUY
One of her largest holdings. Reported strongly today, but stocks down. Disappointing, but today is a buying opportunity. It's a reopening play as people will spend a lot on travel. Metrics were very strong in the report including card fee growth of 16% YOY, 3 million new cards signed up, 19x PE, and upbeat guidance of 18-20% growth this year and mid-teens for coming year. She expects business spend to pick up. A strong beat, but share are down -- earnings season is "silly season."
investment companies / funds
BUY on WEAKNESS
We'll be in a trading range in the short term at least. The Fed is so behind the inflation curve; inflation so high. Can the Fed engineer a soft landing? Even 7 rate hikes won't cure inflation. We need to fix supply chains. On the positive side, she always felt 2022 growth will be slower than 2021, because fiscal supports have ended. Housing is still strong. Banks are lending, and consumers have historically high amounts of cash to spend. She is adding during this weakness to Dow Chemicals and American Express for example. Look for solid fundamdentals.
investment companies / funds
BUY on WEAKNESS
It will be choppy trading for another month for sure as we digest inflation, including services inflation--inflation is broadening out into other categories. Not enough attention is being paid to retail sales--which are up--and homes sales are also up nicely. We have to wait--nobody knows where inflation is going. She's a long-term investor. Companies that performed best during earnings season are the ones she likes: Expedia, Wynn, Hilton. Would consider AmEx, Coke, McDonald's--if you get them on sale, you can leg into them and see how it goes.
investment companies / funds
BUY
He owns MA instead, and knows Visa well. All are positioned very well for the move to a cashless society. Ramping up investments in fintech and bitcoin-type currencies. Likes them going forward.
investment companies / funds
DON'T BUY
As a trader, not long-term investor He sold it. He bought more financials in September at $163, then popped to $189. He traded it. Fed moves (tapering and raising rates) have a negative impact on financials, and he was holding too many financials. He raised a little cash from this sale. Inflation isn't as transitory as the Fed thought, and he worries that the US yield curve will invert. He doesn't envy Jay Powell; the Fed is in a tough spot.
investment companies / funds
BUY on WEAKNESS
Shares have fallen off a cliff in recent weeks. They have great ties with small/medium businesses, and Millennial consumers. A quality name worth nibbling at during the current Omicron sell-off.
investment companies / funds
American Express(AXP-N) Rating
Ranking : 4 out of 5
Bullish - Buy Signals / Votes : 11
Neutral - Hold Signals / Votes : 0
Bearish - Sell Signals / Votes : 1
Total Signals / Votes : 12
American Express(AXP-N) Frequently Asked Questions
What is American Express stock symbol?
American Express is a American stock, trading under the symbol AXP-N on the New York Stock Exchange (AXP). It is usually referred to as NYSE:AXP or AXP-N
Is American Express a buy or a sell?
In the last year, 12 stock analysts published opinions about AXP-N. 11 analysts recommended to BUY the stock. 1 analyst recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for American Express.
Is American Express a good investment or a top pick?
American Express was recommended as a Top Pick by on . Read the latest stock experts ratings for American Express.
Why is American Express stock dropping?
Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.
Is American Express worth watching?
12 stock analysts on Stockchase covered American Express In the last year. It is a trending stock that is worth watching.
What is American Express stock price?
On 2022-12-02, American Express (AXP-N) stock closed at a price of $156.75.
