American Express Company [AXP] – 3 Facts you Should Read Before investing in AXP

American Express Company [NYSE: AXP] opened at $91.75 and closed at $96.12 a share within trading session on 04/29/20. That means that the stock dropped by -2.95% compared to the closing price from a day before, when the stock touched $93.28.

Between the start and the closing of the latest trading session, American Express Company [NYSE: AXP] had 2.15 million shares being bought and sold. In the last three months, average trading volumes hovered around 7.37M shares. During the last week, volatility in the share price was set at 4.14%, which placed the metric for the last 30 days at 4.95%. The price of the stock additionally went down to 67.00 during that period and AXP managed to take a rebound to 138.13 in the last 52 weeks.

American Express Company [NYSE:AXP]: Analyst Rating and Earnings

Stock market traders frequently keep their eyes on what Wall Street experts as it relates to a potential investment. For American Express Company [AXP], the most recent analyst consensus recommendation available since its latest financial results for the quarter ending in 3/30/2020. On average, stock market experts give AXP an Overweight rating. The average 12-month price forecast for this stock is $93.09, with the high estimate being $129.00, the low estimate being $76.00 and the median estimate amounting to $100.00. This is compared to its latest closing price of $96.12.

Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for American Express Company [AXP] is sitting at 4.00. This is compared to 1 month ago, when its average rating was 4.00.

Keep your eyes peeled for the soon-to-be-published financial results of this company, which are expected to be made public on 07/15/2020.

Fundamental Analysis of American Express Company [AXP]

Now let’s turn to look at profitability: with a current Operating Margin for American Express Company [AXP] sitting at 18.70% and its Gross Margin at 68.50%, this company’s Net Margin is now 14.70. These measurements indicate that American Express Company [AXP] is generating considerably more profit, after expenses are accounted for, compared to its market peers.

This company’s Return on Total Capital is 9.97, and its Return on Invested Capital has reached 9.97. Its Return on Equity is 29.00%, and its Return on Assets is 3.40%. These metrics show a mixed bag, which means that this investment’s attractiveness can be quickly increased or decreased in the short term, depending on future updates AXP financial performance.

Turning to investigate this organization’s capital structure, American Express Company [AXP] has generated a Total Debt to Total Equity ratio of 278.61. Similarly, its Total Debt to Total Capital is 73.59, while its Total Debt to Total Assets stands at 32.41. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 183.00, and its Long-Term Debt to Total Capital is 48.34.

What about valuation? This company’s Enterprise Value to EBITDA is 11.04 and its Total Debt to EBITDA Value is 4.23. The Enterprise Value to Sales for this firm is now 2.29, and its Total Debt to Enterprise Value stands at 0.45. American Express Company [AXP] has a Price to Book Ratio of 4.37, a Price to Cash Flow Ratio of 7.58 and P/E Ratio of 14.11. These metrics all suggest that American Express Company is more likely to generate a positive ROI.

American Express Company [AXP] has 806.56M shares outstanding, amounting to a total market cap of 77.53B. Its stock price has been found in the range of 67.00 to 138.13. At its current price, it has moved down by -32.47% from its 52-week high, and it has moved up 39.22% from its 52-week low.

This stock’s Beta value is currently 1.10, which indicates that it is 4.14% more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 53.88. This RSI score is good, suggesting this stock is neither overbought or oversold.

Conclusion: Is American Express Company [AXP] a Reliable Buy?

Shares of American Express Company [AXP], on the whole, present investors with both positive and negative signals. Wall Street analysts have mixed reviews when it comes to the 12-month price outlook, and this company’s financials show a combination of strengths and weaknesses. Based on the price performance, this investment is somewhat risky while presenting reasonable potential for ROI.

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Author: Kevin Freeman