- American Express (AXP) is trading at new all-time highs and shows strong technical momentum here.
- The stock maintains a 100% “Buy” opinion from Barchart.
- AXP has made a 32.15% gain over the past year and shares are up 9.12% in the past month.
- Analyst sentiment is mixed, but most individual investors and several major firms maintain bullish ratings and high price targets for AXP.
Today’s Featured Stock
Valued at $248 billion, American Express (AXP) is a diversified financial services company, offering charge and credit payment card products and travel-related services worldwide.
What I’m Watching
I found today’s Chart of the Day by using Barchart’s powerful screening functions to sort for stocks with the highest technical buy signals; superior current momentum in both strength and direction; and a Trend Seeker “buy” signal. I then used Barchart’s Flipcharts feature to review the charts for consistent price appreciation. AXP checks those boxes. Since the Trend Seeker signaled a new “Buy” on Oct.20, the stock has gained 2.98%.
Barchart Technical Indicators for American Express
Editor’s Note: The technical indicators below are updated live during the session every 20 minutes and can therefore change each day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report. These technical indicators form the Barchart Opinion on a particular stock.
American Express hit an all-time high of $365.75 in intraday trading on Oct. 1.
- AXP has a Weighted Alpha of +31.70.
- American Express has a 100% “Buy” opinion from Barchart.
- The stock gained 32.15% over the past year.
- AXP has its Trend Seeker “Buy” signal intact.
- The stock recently traded at $361.45 with a 50-day moving average of $336.21.
- American Express has made 11 new highs and gained 9.12% in the last month.
- Relative Strength Index (RSI) is at 66.76.
- There’s a technical support level around $357.16.
Don’t Forget the Fundamentals
- $248 billion market capitalization.
- 24.09x trailing price-earnings ratio.
- 0.91% dividend yield.
- Revenue is projected to grow 9.30% this year and another 8.86% next year.
- Earnings are estimated to increase 15.83% this year and an additional 12.46% next year.
Analyst and Investor Sentiment on American Express
I don’t buy stocks because everyone else is buying, but I do realize that if major firms and investors are dumping stock, it’s hard to make money swimming against the tide.
It looks like Wall Street analysts are mixed on AXP but not individual investors.
- The Wall Street analysts tracked by Barchart have issued 8 “Strong Buys,” 2 “Moderate Buys,” 19 “Hold” and a single “Strong Sell” opinion on the stock with price targets between $280 and $400 – a very wide range.
- Value Line rates the stock “Highest” with a price target of $435 and comments: “American Express seems to be headed for another successful year.”
- CFRA’s MarketScope Advisor rates it a “Buy” with a price target of $440.
- Morningstar thinks the stock is 36% overvalued.
- 6,200 investors following the stock on Motley Fool think the stock will beat the market while 1,176 think it won’t.
- 120,980 investors monitor the stock on Seeking Alpha, which rates the stock a “Hold” and comments: “AXP demonstrates robust profitability and positive stock momentum, its high valuation relative to the sector presents a challenge.”
The Bottom Line on American Express
Although Morningstar focuses on the high price-earnings ratio, Wall Street analysts and individual investors seem to be bullish.
Today’s Chart of the Day was written by Jim Van Meerten. Read previous editions of the daily newsletter here.
On the date of publication, Jim Van Meerten did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
On the date of publication, Jim Van Meerten did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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