American Story

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AXP -- USA Stock  

USD 120.59  0.01  0.0083%

It appears that American Express will continue to recover much faster as its share price surged up 3.31% today. This firm's current daily volatility is 1.77 percent, with a beta of 0.25 and an alpha of 0.1 over DOW. As many millenniums are trying to avoid dividend beast, it makes sense to recap American Express a little further and try to understand its current market patterns. We will evaluate why we are still optimistic in anticipation of a recovery.
Published over a month ago
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Breaking down American Express (NYSE:AXP) volatility decline
American Express has roughly 41.7 B in cash with 2.07 B of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 51.79. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. American Express has an asset utilization ratio of 21.26 percent. This suggests that the company is making $0.21 for each dollar of assets. An increasing asset utilization means that American Express is more efficient with each dollar of assets it utilizes for everyday operations.
Investing in American Express, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding American Express along with other instruments in the same portfolio. Using conventional technical analysis and fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.

How important is American Express's Liquidity

American Express financial leverage refers to using borrowed capital as a funding source to finance American Express ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. American Express financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between American Express's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions. It is good to see analyst projects for American Express, but it might be worth checking our own buy vs. sell analysis

American Express Correlation with Peers

Investors in American can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in American Express. Diversification will allow for the same portfolio return with reduced risk. The correlation table of American Express and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities American is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with your current brokerage. Please check volatility of American for more details

Breaking down the case for American Express

We consider American Express very steady. American Express secures Sharpe Ratio (or Efficiency) of 0.0922, which signifies that the company had 0.0922% of return per unit of standard deviation over the last month. Our philosophy in foreseeing the volatility of a stock is to use all available market data together with stock specific technical indicators that cannot be diversified away. We have found twenty-eight technical indicators for American Express, which you can use to evaluate future volatility of the firm. Please confirm American Express risk adjusted performance of 0.0769, and Mean Deviation of 1.32 to double-check if the risk estimate we provide is consistent with the expected return of 0.16%.
Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

Will American Express recent roll up continue?

Recent Skewness is up to -0.03. Price may decline again. American Express has relatively low volatility with skewness of -0.03 and kurtosis of 0.35. 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.

Our Final Take On American Express

Although some firms within the credit services industry are still a little expensive, even after the recent corrections, American Express may offer a potential longer-term growth to insiders. With an impartial outlook on the current market volatility, it may be better to hold off any inventment activity and neither buy nor sell any shares of American Express at this time. The American Express risk-reward trade off is not appealing enough to do any trading. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to American Express.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of American Express. Please refer to our Terms of Use for any information regarding our disclosure principles.

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