American Express Company (AXP) Buy or Sell Stock Guide

Last updated: May 12, '19

Are you looking for the analysis of American Express Company (AXP) stock? Are you wondering what the bulls and the bears say about it?

If so, you came to the right place. In this stock guide, we will share with you 7 reasons to buy and 5 reasons to sell AXP stock. You’ll get a perspective on what the bulls and the bears say about it.

The analysis below may be also 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 / investment?
  • What are AXP analyst opinions, recommendations and ratings?

Let’s start with the bull case. Here are the reasons to buy AXP stock:

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 6.80%, higher than the industry and sector average revenue growth (4.93% and 5.69%, respectively). See AXP revenue growth chart.

5. AXP profitability is improving. The YoY profit margin change was 10.66percentage points. See AXP profitability chart.

6. AXP forward dividend yield is 1.43%, higher than the industry (0.36%) and sector (0.91%) forward dividend yields. See AXP forward dividend chart.

7. AXP average analyst rating is Buy. See AXP analyst rating chart.

Now that you understand the bull case, let’s look at the reasons to sell AXP stock (i.e., the bear case):

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 ($118.46) is close to the 52-week high ($119.35). Perhaps now is a good time to sell? See AXP price chart.

5. AXP average analyst price target ($118.09) is below its current price ($118.46). See AXP price target chart.

Now let's look at the key statistics for AXP:

Metrics AXP
Price $118.45
Average Price Target / Upside $118.09 / -0.30%
Average Analyst Rating Buy
Industry Credit Services
Sector Financial Services
Number of Employees 59,000
Market Cap $97.71B
Forward P/E Ratio 13
Price/Book Ratio 2.6
PEG 1.57
Revenue (TTM) $37.60B
YoY Quarterly Revenue Growth 6.8%
Profit Margin 18.18%

What are your thoughts on AXP?

If you liked this analysis, check out Buy or Sell Stock Guides for other stocks.

Comments (0)expand_more