American Express Company (AXP) Buy or Sell Stock Guide
The analysis below may be helpful to you if you have any of the following questions about AXP stock:
- Is AXP a buy or a sell?
- Should I sell or hold AXP stock today?
- Is AXP a good buy / a good investment?
- What are AXP analyst opinions, recommendations, ratings?
Here are AXP stock buy reasons/signals:
1. The data associated with American Express' affluent customers, and its direct connections to merchants, will enable the company to differentiate its rewards and maintain premium pricing for years to come.
2. American Express is allowing third parties to issue cards and acquire transactions, expanding the reach of its network.
3. American Express' reputation for superior customer service is a valuable intangible asset, and a substantial percentage of customers will not leave for a better deal.
4. AXP quarterly revenue growth was 8.30%, higher than the industry and sector average revenue growth (6.39% and 6.53%, respectively).
5. AXP forward dividend yield is 1.50%, higher than the industry (0.44%) and sector (1.19%) forward dividend yields.
6. AXP average analyst rating is Buy.
7. AXP average analyst price target ($109.56) is above its current price ($98.25).
Here are AXP stock sell reasons/signals:
1. Mobile technology will alter the payment landscape in the biggest way since the advent of the credit card.
2. Competitors are making inroads into the premium space with ever more lucrative rewards offerings. As a monoline card issuer, American Express will have a hard time competing against diversified financial institutions.
3. Merchants are looking to take back control of rewards and loyalty programs from card issuers.
4. AXP profitability is declining. The YoY profit margin change was -8.30pp.
5. AXP short interest (days to cover the shorts) ratio is 3.38. The stock garners more short interest than the average industry, sector or S&P 500 stock.
What are your thoughts on AXP?
If you liked this analysis, check out Buy or Sell Stock Guides for other stocks.