Is American Express Stock a Good Investment?
American Express Investment Advice | AXP |
- Examine American Express' financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research American Express' leadership team and their track record. Good management can help American Express navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Consumer Finance space and any emerging trends that could impact American Express' business and its evolving consumer preferences.
- Compare American Express' performance and market position to its competitors. Analyze how American Express is positioned in terms of product offerings, innovation, and market share.
- Check if American Express pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about American Express' stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in American Express stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if American Express is a good investment.
Sell | Buy |
Buy
Market Performance | Good | Details | |
Volatility | Very steady | Details | |
Hype Condition | Under hyped | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Actively responds to the market | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Buy | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine American Express Stock
Researching American Express' stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 22.0% of the company shares are held by company insiders. The company has Price/Earnings To Growth (PEG) ratio of 1.93. American Express recorded earning per share (EPS) of 13.6. The entity last dividend was issued on the 4th of October 2024. The firm had 10000:8753 split on the 3rd of October 2005.
To determine if American Express is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding American Express' research are outlined below:
About 64.0% of the company shares are held by institutions such as insurance companies | |
On 8th of November 2024 American Express paid $ 0.7 per share dividend to its current shareholders | |
Latest headline from fool.com.au: Building up income 2 ASX dividend shares I believe are a buy |
American Express uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in American Express. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to American Express' previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
18th of April 2024 Upcoming Quarterly Report | View | |
19th of July 2024 Next Financial Report | View | |
31st of March 2024 Next Fiscal Quarter End | View | |
24th of January 2025 Next Fiscal Year End | View | |
31st of December 2023 Last Quarter Report | View | |
31st of December 2023 Last Financial Announcement | View |
Earnings surprises can significantly impact American Express' stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises American Express' investors have experienced.
Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
---|---|---|---|---|---|---|---|
2007-04-19 | 2007-03-31 | 0.8 | 0.88 | 0.08 | 10 | ||
2001-10-22 | 2001-09-30 | 0.3 | 0.22 | -0.08 | 26 | ||
2017-01-19 | 2016-12-31 | 0.98 | 0.88 | -0.1 | 10 | ||
2010-04-22 | 2010-03-31 | 0.63 | 0.73 | 0.1 | 15 | ||
2008-10-20 | 2008-09-30 | 0.59 | 0.74 | 0.15 | 25 | ||
2015-01-21 | 2014-12-31 | 1.38 | 1.22 | -0.16 | 11 | ||
2009-10-22 | 2009-09-30 | 0.38 | 0.54 | 0.16 | 42 | ||
2009-07-23 | 2009-06-30 | 0.26 | 0.09 | -0.17 | 65 |
American Express Target Price Consensus
American target price is determined by taking all analyst projections and averaging them out. There is no one specific way to measure analysts' performance other than comparing it to past results via a very sophisticated attribution analysis. American Express' target price projections below should be used in combination with other traditional price prediction techniques such as stock price forecasting, investor sentiment analysis, technical analysis, earnings estimate, and various momentum models.
28 | Buy |
Most American analysts issue ratings four times a year, at intervals of three months. Ratings are usually accompanied by a target price to help potential investors understand American stock's fair price compared to its market value. Analysts arrive at stock ratings after researching the public financial statements of American Express, talking to its executives and customers, or listening to those companies' conference calls.
Macroaxis Advice Exposure ValuationAmerican Express Target Price Projection
American Express' current and average target prices are 304.68 and 182.44, respectively. The current price of American Express is the price at which American Express is currently trading. On the other hand, American Express' target price is what analysts think the stock is worth or could sell for in the future. The more significant the discrepancy between the two prices, the more it stimulates investors to act.Current Price
American Express Market Quote on 30th of November 2024
Target Price
Analyst Consensus On American Express Target Price
American Express Analyst Ratings
American Express' analyst stock recommendations are determined by taking an average estimate of all analysts we track and classifying them as Strong Buy, Buy, Hold, Strong Sell, or Sell. Ratings generally communicate what analysts sense about American Express stock, and they use a lot of effort and time to analyze it and arrive at a rating. That suggests that analyst recommendations are the outcome of an objective and thorough examination of American Express' financials, market performance, and future outlook by experienced professionals. American Express' historical ratings below, therefore, can serve as a valuable tool for investors.Know American Express' Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as American Express is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading American Express backward and forwards among themselves. American Express' institutional investor refers to the entity that pools money to purchase American Express' securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
Shares | T. Rowe Price Associates, Inc. | 2024-06-30 | 9.1 M | Fisher Asset Management, Llc | 2024-09-30 | 8.7 M | Nuveen Asset Management, Llc | 2024-06-30 | 6.8 M | Norges Bank | 2024-06-30 | 6.4 M | Northern Trust Corp | 2024-09-30 | 5.9 M | Legal & General Group Plc | 2024-06-30 | 5.1 M | Amvescap Plc. | 2024-06-30 | 5.1 M | Artisan Partners Limited Partnership | 2024-09-30 | 4.9 M | Goldman Sachs Group Inc | 2024-06-30 | 4.8 M | Berkshire Hathaway Inc | 2024-06-30 | 151.6 M | Vanguard Group Inc | 2024-09-30 | 45.1 M |
American Express' market capitalization trends
The company currently falls under 'Mega-Cap' category with a total capitalization of 214.63 B.Market Cap |
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American Express' profitablity analysis
Last Reported | Projected for Next Year | ||
Return On Tangible Assets | 0.03 | 0.02 | |
Return On Capital Employed | 0.09 | 0.10 | |
Return On Assets | 0.03 | 0.02 | |
Return On Equity | 0.30 | 0.18 |
Determining American Express' profitability involves analyzing its financial statements and using various financial metrics to determine if American Express is a good buy. For example, gross profit margin measures American Express' profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of American Express' profitability and make more informed investment decisions.
Evaluate American Express' management efficiency
American Express has Return on Asset of 0.0379 % which means that on every $100 spent on assets, it made $0.0379 of profit. This is way below average. In the same way, it shows a return on shareholders' equity (ROE) of 0.3469 %, implying that it generated $0.3469 on every 100 dollars invested. American Express' management efficiency ratios could be used to measure how well American Express manages its routine affairs as well as how well it operates its assets and liabilities. As of 11/30/2024, Return On Capital Employed is likely to grow to 0.10, while Return On Tangible Assets are likely to drop 0.02. At this time, American Express' Total Current Liabilities is relatively stable compared to the past year. As of 11/30/2024, Non Current Liabilities Total is likely to grow to about 247.1 B, while Liabilities And Stockholders Equity is likely to drop slightly above 169.3 B.Last Reported | Projected for Next Year | ||
Book Value Per Share | 38.17 | 40.08 | |
Tangible Book Value Per Share | 32.80 | 34.44 | |
Enterprise Value Over EBITDA | 9.79 | 14.47 | |
Price Book Value Ratio | 4.91 | 2.99 | |
Enterprise Value Multiple | 9.79 | 14.47 | |
Price Fair Value | 4.91 | 2.99 | |
Enterprise Value | 36.4 B | 38.7 B |
The management strategies employed by American Express' are designed to enhance shareholder value and ensure long-term growth. We assess the effectiveness of these strategies in our stock analysis.
Dividend Yield 0.0092 | Forward Dividend Yield 0.0092 | Forward Dividend Rate 2.8 | Beta 1.214 |
Basic technical analysis of American Stock
As of the 30th of November, American Express shows the mean deviation of 1.23, and Risk Adjusted Performance of 0.1311. American Express technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices.American Express' insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific American Express insiders, such as employees or executives, is commonly permitted as long as it does not rely on American Express' material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases American Express insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Christopher Young over a year ago Acquisition by Christopher Young of 232 shares of American Express subject to Rule 16b-3 | ||
Ronald Williams over a year ago Acquisition by Ronald Williams of 421 shares of American Express subject to Rule 16b-3 |
American Express' Outstanding Corporate Bonds
American Express issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. American Express uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most American bonds can be classified according to their maturity, which is the date when American Express has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
AMERICAN EXPRESS CR Corp BondUS0258M0EL96 | View | |
MPLX LP 52 Corp BondUS55336VAL45 | View | |
AMERICAN EXPRESS 815 Corp BondUS025816AZ26 | View | |
AMERICAN EXPRESS 405 Corp BondUS025816BF52 | View | |
AMERICAN EXPRESS 3625 Corp BondUS025816BK48 | View | |
AMERICAN EXPRESS 42 Corp BondUS025816CA56 | View | |
AMERICAN EXPRESS PANY Corp BondUS025816CF44 | View | |
AXP 355 Corp BondUS025816CH00 | View |
Understand American Express' technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing American Express' various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
Risk Adjusted Performance | 0.1311 | |||
Market Risk Adjusted Performance | 0.1653 | |||
Mean Deviation | 1.23 | |||
Semi Deviation | 1.11 | |||
Downside Deviation | 1.44 | |||
Coefficient Of Variation | 608.1 | |||
Standard Deviation | 1.67 | |||
Variance | 2.8 | |||
Information Ratio | 0.0822 | |||
Jensen Alpha | 0.0473 | |||
Total Risk Alpha | (0.01) | |||
Sortino Ratio | 0.0956 | |||
Treynor Ratio | 0.1553 | |||
Maximum Drawdown | 9.79 | |||
Value At Risk | (2.19) | |||
Potential Upside | 2.83 | |||
Downside Variance | 2.07 | |||
Semi Variance | 1.23 | |||
Expected Short fall | (1.34) | |||
Skewness | 0.8561 | |||
Kurtosis | 2.96 |
Risk Adjusted Performance | 0.1311 | |||
Market Risk Adjusted Performance | 0.1653 | |||
Mean Deviation | 1.23 | |||
Semi Deviation | 1.11 | |||
Downside Deviation | 1.44 | |||
Coefficient Of Variation | 608.1 | |||
Standard Deviation | 1.67 | |||
Variance | 2.8 | |||
Information Ratio | 0.0822 | |||
Jensen Alpha | 0.0473 | |||
Total Risk Alpha | (0.01) | |||
Sortino Ratio | 0.0956 | |||
Treynor Ratio | 0.1553 | |||
Maximum Drawdown | 9.79 | |||
Value At Risk | (2.19) | |||
Potential Upside | 2.83 | |||
Downside Variance | 2.07 | |||
Semi Variance | 1.23 | |||
Expected Short fall | (1.34) | |||
Skewness | 0.8561 | |||
Kurtosis | 2.96 |
Consider American Express' intraday indicators
American Express intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of American Express stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
Accumulation Distribution | 13387.63 | |||
Daily Balance Of Power | 0.1383 | |||
Rate Of Daily Change | 1.0 | |||
Day Median Price | 306.24 | |||
Day Typical Price | 305.72 | |||
Price Action Indicator | (1.34) | |||
Period Momentum Indicator | 0.43 | |||
Relative Strength Index | 62.54 |
American Express Corporate Filings
F4 | 25th of November 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
8K | 15th of November 2024 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
25th of October 2024 Other Reports | ViewVerify | |
23rd of July 2024 Prospectus used primarily for registering securities for public sale. | ViewVerify |
American Stock media impact
Far too much social signal, news, headlines, and media speculation about American Express that are available to investors today. That information is available publicly through American media outlets and privately through word of mouth or via American internal channels. However, regardless of the origin, that massive amount of American data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of American Express news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of American Express relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to American Express' headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive American Express alpha.
American Express Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards American Express can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
American Express Historical Investor Sentiment
Investor biases related to American Express' public news can be used to forecast risks associated with an investment in American. The trend in average sentiment can be used to explain how an investor holding American can time the market purely based on public headlines and social activities around American Express. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
American Express' market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for American Express and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average American Express news discussions. The higher the estimate score, the more favorable the investor's outlook on American Express.
American Express Maximum Pain Price across 2024-12-06 Option Contracts
American Express' options can also be used to analyze investors' bias and current market sentiment in the context of behavioral finance. For example, Max pain usually refers to a trading concept that asserts that market manipulation can cause the market price of American Express close to the expiration of its current option contract to expire worthlessly. According to most research, about 35% of options are not executed, with roughly 50% traded out before expiration. So, Max pain occurs when market makers reach a net favorable position across all options at a strike price where option holders stand to lose the most money. By contrast, option sellers may reap the most after selling more options than buying, causing them to expire worthlessly. Please continue to view the detailed analysis of American Express' options.
American Express Corporate Directors
Lisa Wardell | Independent Director | Profile | |
Christopher Young | Independent Director | Profile | |
Thomas Baltimore | Independent Director | Profile | |
Lynn Pike | Independent Director | Profile |
Already Invested in American Express?
The danger of trading American Express is mainly related to its market volatility and Company specific events. As an investor, you must understand the concept of risk-adjusted return before you start trading. The most common way to measure the risk of American Express is by using the Sharpe ratio. The ratio expresses how much excess return you acquire for the extra volatility you endure for holding a more risker asset than American Express. The Sharpe ratio is calculated by using standard deviation and excess return to determine reward per unit of risk. To understand how volatile American Express is, you must compare it to a benchmark. Traditionally, the risk-free rate of return is the rate of return on the shortest-dated U.S. Treasury, such as a 3-year bond.
Additional Tools for American Stock Analysis
When running American Express' price analysis, check to measure American Express' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy American Express is operating at the current time. Most of American Express' value examination focuses on studying past and present price action to predict the probability of American Express' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move American Express' price. Additionally, you may evaluate how the addition of American Express to your portfolios can decrease your overall portfolio volatility.