American Express Stock Buy Hold or Sell Recommendation

AXP Stock  USD 227.75  3.29  1.47%   
Considering the 90-day investment horizon and your above-average risk tolerance, our recommendation regarding American Express is 'Strong Buy'. Macroaxis provides American Express buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding AXP positions. The advice algorithm takes into account all of American Express' available fundamental, technical, and predictive indicators you will find on this site. Key drivers impacting American Express' buy or sell advice are summarized below:
Real Value
218.72
Target Price
182.44
Hype Value
227.75
Market Value
227.75
Naive Value
228.66
A buy or sell recommendation provided by Macroaxis is an automated directive regarding whether to purchase or sell American Express given historical horizon and risk tolerance towards American Express. When Macroaxis issues a 'buy' or 'sell' recommendation for American Express, the advice is generated through an automated system that utilizes algorithms and statistical models.
  
Check out American Express Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool.
To learn how to invest in American Stock, please use our How to Invest in American Express guide.
In addition, we conduct extensive research on individual companies such as American and provide practical buy, sell, or hold advice based on investors' investing horizon and their risk tolerance towards American Express. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in interest.

Execute American Express Buy or Sell Advice

The American recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on American Express. Macroaxis does not own or have any residual interests in American Express or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute American Express' advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell American ExpressBuy American Express
Strong Buy

Market Performance

SolidDetails

Volatility

Very steadyDetails

Hype Condition

StaleDetails

Current Valuation

Fairly ValuedDetails

Odds Of Distress

LowDetails

Economic Sensitivity

Almost mirrors the marketDetails

Investor Sentiment

ImpartialDetails

Analyst Consensus

BuyDetails

Financial Strenth (F Score)

HealthyDetails

Financial Leverage

Not RatedDetails

Reporting Quality (M-Score)

Unlikely ManipulatorDetails
For the selected time horizon American Express has a Risk Adjusted Performance of 0.1494, Jensen Alpha of 0.1776, Total Risk Alpha of 0.0347, Sortino Ratio of 0.2092 and Treynor Ratio of 0.2792
Macroaxis provides advice on American Express to complement and cross-verify current analyst consensus on American Express. Our investment recommendation engine determines the company's potential to grow exclusively from the perspective of an investor's current risk tolerance and investing horizon. To make sure American Express is not overpriced, please confirm all American Express fundamentals, including its shares owned by insiders, cash and equivalents, target price, as well as the relationship between the price to sales and book value per share . Given that American Express has a price to book of 5.76 X, we suggest you to validate American Express market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your prevailing risk tolerance and investing horizon.

American Express Trading Alerts and Improvement Suggestions

About 65.0% of the company shares are held by institutions such as insurance companies
On 9th of February 2024 American Express paid $ 0.6 per share dividend to its current shareholders
Latest headline from oregonlive.com: Feds seek assets allegedly derived in colossal heist targeting wealthy Oregon publisher

American Express Returns Distribution Density

The distribution of American Express' historical returns is an attempt to chart the uncertainty of American Express' future price movements. The chart of the probability distribution of American Express daily returns describes the distribution of returns around its average expected value. We use American Express price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of American Express returns is essential to provide solid investment advice for American Express.
Mean Return
0.33
Value At Risk
-1.38
Potential Upside
1.88
Standard Deviation
1.28
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of American Express historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

American Stock 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 originates 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.
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5.3 M
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5.1 M
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151.6 M
Vanguard Group Inc2023-12-31
46.6 M
Note, although American Express' institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

American Express Cash Flow Accounts

201920202021202220232024 (projected)
Change In Cash(3.4B)8.5B(10.9B)11.9B12.7B13.3B
Free Cash Flow12.0B4.1B13.1B19.2B17.0B17.8B
Depreciation1.2B1.5B1.7B1.6B1.7B902.7M
Other Non Cash Items3.6B4.7B(2.2B)2.5B5.6B2.9B
Dividends Paid1.4B1.5B1.4B1.6B(1.8B)(1.7B)
Capital Expenditures1.6B1.5B1.6B1.9B1.6B1.0B
Net Income6.8B3.1B8.1B7.5B8.4B8.8B
End Period Cash Flow24.4B33.0B22.0B33.9B46.6B48.9B
Investments(14.9B)13.6B(9.0B)(31.8B)(24.4B)(23.2B)
Net Borrowings2.2B(20.2B)(3.4B)3.6B4.2B4.4B
Change To Netincome4.3B4.7B(1.6B)2.0B2.3B2.3B

American Express Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to American Express or Consumer Finance sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that American Express' price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a American stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over NYSE Composite
0.18
β
Beta against NYSE Composite1.15
σ
Overall volatility
1.32
Ir
Information ratio 0.15

American Express Volatility Alert

American Express has low volatility with Treynor Ratio of 0.28, Maximum Drawdown of 8.77 and kurtosis of 11.27. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure American Express' stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact American Express' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.

American Express Implied Volatility

American Express' implied volatility exposes the market's sentiment of American Express stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if American Express' implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that American Express stock will not fluctuate a lot when American Express' options are near their expiration.

American Express Fundamentals Vs Peers

Comparing American Express' fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze American Express' direct or indirect competition across all of the common fundamentals between American Express and the related equities. This way, we can detect undervalued stocks with similar characteristics as American Express or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of American Express' fundamental indicators could also be used in its relative valuation, which is a method of valuing American Express by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare American Express to competition
FundamentalsAmerican ExpressPeer Average
Return On Equity0.32-0.31
Return On Asset0.0342-0.14
Profit Margin0.15 %(1.27) %
Operating Margin0.17 %(5.51) %
Current Valuation177.17 B16.62 B
Shares Outstanding720.04 M571.82 M
Shares Owned By Insiders21.05 %10.09 %
Shares Owned By Institutions65.26 %39.21 %
Number Of Shares Shorted8.32 M4.71 M
Price To Earning15.49 X28.72 X
Price To Book5.76 X9.51 X
Price To Sales2.91 X11.42 X
Revenue60.36 B9.43 B
Gross Profit28.78 B27.38 B
EBITDA12.16 B3.9 B
Net Income8.37 B570.98 M
Cash And Equivalents34 B2.7 B
Cash Per Share42.01 X5.01 X
Total Debt49.16 B5.32 B
Debt To Equity1.84 %48.70 %
Current Ratio1.62 X2.16 X
Book Value Per Share38.81 X1.93 K
Cash Flow From Operations18.56 B971.22 M
Short Ratio2.46 X4.00 X
Earnings Per Share11.20 X3.12 X
Price To Earnings To Growth1.55 X4.89 X
Target Price208.2
Number Of Employees74.6 K18.84 K
Beta1.23-0.15
Market Capitalization161.62 B19.03 B
Total Asset261.11 B29.47 B
Retained Earnings19.61 B9.33 B
Working Capital9.57 B1.48 B
Note: Acquisition by Christopher Young of 232 shares of American Express subject to Rule 16b-3 [view details]

American Express Market Momentum

Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as American . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.

About American Express Buy or Sell Advice

When is the right time to buy or sell American Express? Buying financial instruments such as American Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
 2022 2023 2024 (projected)
Short and Long Term Debt Total44B49.2B50.9B
Total Assets228B261.1B169.3B

Use Investing Ideas to Build Portfolios

In addition to having American Express in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Healthcare Funds Thematic Idea Now

Healthcare Funds
Healthcare Funds Theme
Funds or Etfs investing in medical and healthcare goods or services as well as hospital management or maintenance organizations. The Healthcare Funds theme has 33 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Healthcare Funds Theme or any other thematic opportunities.
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When determining whether American Express is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if American Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about American Express Stock. Highlighted below are key reports to facilitate an investment decision about American Express Stock:
Check out American Express Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool.
To learn how to invest in American Stock, please use our How to Invest in American Express guide.
You can also try the AI Investment Finder module to use AI to screen and filter profitable investment opportunities.

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Is American Express' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of American Express. If investors know American will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about American Express listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.263
Dividend Share
2.4
Earnings Share
11.2
Revenue Per Share
75.635
Quarterly Revenue Growth
0.092
The market value of American Express is measured differently than its book value, which is the value of American that is recorded on the company's balance sheet. Investors also form their own opinion of American Express' value that differs from its market value or its book value, called intrinsic value, which is American Express' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because American Express' market value can be influenced by many factors that don't directly affect American Express' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between American Express' value and its price as these two are different measures arrived at by different means. Investors typically determine if American Express is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, American Express' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.