American Stock Buy Hold or Sell Recommendation

AXP -  USA Stock  

USD 170.53  1.42  0.83%

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.

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The advice is provided from American Express' buy-and-hold perspective. Please continue to 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. We conduct extensive research on individual companies such as American and provide practical buy, sell, or hold advice based on selected investing horizon and risk tolerance towards American Express.

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

Volatility

Very steadyDetails

Hype Condition

Low keyDetails

Current Valuation

UndervaluedDetails

Odds of Distress

Below AverageDetails

Economic Sensitivity

Actively responds to the marketDetails

Analyst Consensus

HoldDetails

Financial Strenth (F Score)

HealthyDetails

Financial Leverage

AdequateDetails

Reporting Quality (M-Score)

Possible ManipulatorDetails
For the selected time horizon American Express has a Risk Adjusted Performance of 0.1073, Jensen Alpha of 0.08, Total Risk Alpha of (0.002334), Sortino Ratio of 0.08 and Treynor Ratio of 0.148
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 cash per share, beta, and the relationship between the revenue and cash flow from operations . Given that American Express has a price to book of 5.58 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

Over 87.0% of the company shares are held by institutions such as insurance companies
Latest headline from bovnews.com: Signs of improvement in American Express Company s stock price will boost it - BOV News

American Express current analysts advice

We track the performance of the top 100 financial experts across various large and mid-size financial boutiques. American analyst recommendations are determined by taking all analyst recommendations and averaging them as Strong Buy, Buy, Hold, Strong Sell or Sell. There is no one specific way to measure analysis performance other than comparing it to the past results via a very sophisticated attribution analysis. American analyst consensus and target price projections should be used in combination with other traditional techniques such as stock price forecasting, technical analysis, earnings estimate, and various momentum models.
Target Mean Price155.11
Target Median Price150.50
Target High Price197.00
Recommendation Mean2.50
Number Of Analyst Opinions26
Target Low Price120.00
Average Consensus Hold
The consensus estimates and target price estimation comprises individual analyst assessments, and may or may not mutch the Macroaxis buy or sell advice. It is determined by taking an average of all analyst recommendations and classifying them as Strong Buy, Buy, Hold, or Sell.

American Express Returns Distribution Density

The distribution of American Express' historical returns is an attempt to chart the future uncertainty of American Express' future price movements. The chart of the probability distribution of American Express stock 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 stock.
Mean Return0.25Value At Risk-2.68
Potential Upside3.31Standard Deviation2.19
 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 originate 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.
Security TypeSharesValue
Fisher Asset Management LlcCommon Shares15.4 M2.5 B
Nordea Investment Management AbCommon Shares2.2 M362.6 M
Marathon Asset Management LlpCommon Shares926.9 K153.2 M
New York State Teachers Retirement SystemCommon Shares765.1 K126.4 M
Strs OhioCommon Shares756.5 K125 M
Douglas Lane Associates LlcCommon Shares668.6 K110.5 M
Assenagon Asset Management SaPut Options570 K94.2 M
Retirement Systems Of AlabamaCommon Shares556.3 K91.9 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

201620172018201920202021 (projected)
Capital Expenditure(1.38 B)(1.06 B)(1.31 B)(1.65 B)(1.48 B)(1.59 B)
Depreciation Amortization and Accretion1.09 B1.32 B1.29 B1.19 B1.54 B1.46 B
Net Cash Flow or Change in Cash and Cash Equivalents2.25 B7.77 B(5.46 B)(3.36 B)8.52 B9.19 B
Net Cash Flow Business Acquisitions and Disposals(487 M)(211 M)(520 M)(352 M)(597 M)(644.13 M)
Issuance Purchase of Equity Shares(4.32 B)(4.27 B)(1.6 B)(4.6 B)(985 M)(1.06 B)
Issuance Repayment of Debt Securities(136 M)6.38 B2.48 B2.17 B(20.15 B)(20.68 B)
Payment of Dividends and Other Cash Distributions(1.21 B)(1.25 B)(1.32 B)(1.42 B)(1.47 B)(1.59 B)
Net Cash Flow from Financing(7.6 B)12.24 B5.1 B(519 M)(9.07 B)(9.31 B)
Net Cash Flow from Investing1.72 B(18.24 B)(19.61 B)(16.71 B)11.63 B12.55 B
Net Cash Flow Investment Acquisitions and Disposals3.58 B(16.97 B)(17.79 B)(14.86 B)13.57 B14.64 B
Net Cash Flow from Operations8.29 B13.54 B8.93 B13.63 B5.59 B8.51 B
Effect of Exchange Rate Changes on Cash(160 M)226 M129 M232 M364 M392.74 M
Share Based Compensation234 M254 M282 M283 M249 M250.1 M

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 Financial Services 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 stock's 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 DOW
0.08
β
Beta against DOW1.61
σ
Overall volatility
0.00
Ir
Information ratio 0.06

American Express Volatility Alert

American Express has relatively low volatility with skewness of 3.36 and kurtosis of 32.26. However, we advise all investors to independently investigate American Express to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns. 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 bullying 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 stocks as prices fall.

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 Equity30.15 %(0.31) %
Return On Asset3.74 %(0.14) %
Profit Margin18.42 %(1.27) %
Current Valuation147.6 B16.62 B
Shares Outstanding803.3 M571.82 M
Shares Owned by Insiders0.12 %10.09 %
Shares Owned by Institutions87.19 %39.21 %
Number of Shares Shorted8.15 M4.71 M
Price to Earning27.87 X28.72 X
Price to Book5.58 X9.51 X
Price to Sales3.58 X11.42 X
Revenue38.14 B9.43 B
Gross Profit22.09 B27.38 B
EBITDA7.12 B3.9 B
Net Income6.92 B570.98 M
Cash and Equivalents29.11 B2.7 B
Cash per Share36.64 X5.01 X
Total Debt39.32 B5.32 B
Debt to Equity1.54 %48.70 %
Current Ratio1.58 X2.16 X
Book Value Per Share30.45 X1.93 K
Cash Flow from Operations11.14 B971.22 M
Short Ratio2.23 X4.00 X
Earnings Per Share6.10 X3.12 X
Price to Earnings To Growth0.89 X4.89 X
Number of Employees63.7 K18.84 K
Beta1.28-0.15
Market Capitalization136.58 B19.03 B
Total Asset161.18 B29.47 B
Retained Earnings12.36 B9.33 B
Working Capital9.57 B1.48 B
Current Asset84.45 B9.34 B
Current Liabilities74.88 B7.9 B
   Acquisition by De La Vega Ralph of 235 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.
Accumulation Distribution64281.59
Daily Balance Of Power(0.42)
Rate Of Daily Change0.99
Day Median Price171.53
Day Typical Price171.2
Market Facilitation Index0.0
Price Action Indicator(1.71)

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 stock 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. Although American Express investors may find it confusing at the beginning, most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
 2020 2021 (projected)
Current Assets76 B69.11 B
Total Assets191.37 B197.84 B

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.

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Run Basic Utilities Thematic Idea Now

Basic Utilities
Basic Utilities Theme
Companies involved in production and distribution of electric, gas, water, and other energy utilities. Basic Utilities theme has 30 constituents.
View All  Next Launch Basic Utilities
Please continue to 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. Note that the American Express information on this page should be used as a complementary analysis to other American Express' statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.

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When running American Express price analysis, check to measure American Express' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy American Express is operating at the current time. Most of American Express' value examination focuses on studying past and present price action to predict the probability of American Express' future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move American Express' price. Additionally, you may evaluate how the addition of American Express to your portfolios can decrease your overall portfolio volatility.
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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 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 American Express value 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.