American Express Company (AXP) Buy or Sell Stock Guide

Last updated: Last Thursday

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 profitability is improving. The YoY profit margin change was 1.00pp.

5. AXP forward dividend yield is 1.41%, higher than the industry (0.57%) and sector (1.27%) forward dividend yields.

6. AXP PEG ratio (P/E adjusted for growth) is 1.55, and it’s low compared to its industry peers’ PEG ratios.

7. AXP average analyst rating is Buy.

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 stock price ($99.77) is close to the 52-week high ($101.26). Perhaps now is a good time to sell?

5. AXP quarterly revenue growth was 5.40%, lower than the industry and sector average revenue growth (7.47% and 6.91%, respectively).

6. AXP average analyst price target ($96.42) is below its current price ($99.77).

7. 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?

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