American Stock Story

AXP
 Stock
  

USD 162.66  1.99  1.21%   

The predictive indicators we use to evaluate American help investors to analyze its daily demand and supply, volume, patterns, and price swings to determine the real value of American Express. We apply different methods to arrive at the intrinsic value of American based on widely used predictive technical indicators. While this unique economic environment continues, American Express may throw investors more surprises in few weeks. What exactly are American Express shareholders getting in August?
Published over three weeks ago
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Will American Express (NYSE:AXP) price continue declining?

The firm shows a Beta (market volatility) of 1.4087, which signifies a somewhat significant risk relative to the market. Let's try to break down what American's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, American Express will likely underperform. Even though it is essential to pay attention to American Express historical returns, it is always good to be careful when utilizing equity current trending patterns. Our philosophy in foreseeing any stock's future performance is to check both, its past performance charts as well as the business as a whole, including all available technical indicators. American Express exposes twenty-eight different technical indicators, which can help you to evaluate its performance. American Express has an expected return of -0.3%. Please be advised to confirm American Express maximum drawdown, and the relationship between the information ratio and expected short fall to decide if American Express performance from the past will be repeated at some point in the near future.
The successful prediction of American Express stock price could yield a significant profit to investors. But is it possible? The efficient-market hypothesis suggests that all published stock prices of traded companies, such as American Express, already reflect all publicly available information. This academic statement is a fundamental principle of many financial and investing theories used today. However, the typical investor usually disagrees with a 'textbook' version of this hypothesis and continually tries to find mispriced stocks to increase returns. We use internally-developed statistical techniques to arrive at the intrinsic value of American Express based on American Express hews, social hype, general headline patterns, and widely used predictive technical indicators.
We also calculate exposure to American Express's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to American Express's related companies.

Use Technical Analysis to project American expected Price

American Express technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.
A focus of American Express technical analysis is to determine if market prices reflect all relevant information impacting that market. A technical analyst looks at the history of American Express trading pattern rather than external drivers such as economic, fundamental, or social events. It is believed that price action tends to repeat itself due to investors' collective, patterned behavior. Hence technical analysis focuses on identifiable price trends and conditions. More Info...

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

Details

American Express reported the last year's revenue of 45.83 B. Total Income to common stockholders was 7.78 B with profit before taxes, overhead, and interest of 30.8 B.

Revenues Breakdown

American Express Revenues yearly trend continues to be very stable with very little volatility. Revenues is likely to drop to about 42.6 B. Revenues usually refers to amount of Revenue recognized from goods sold; services rendered; insurance premiums; or other activities that constitute an earning process. Interest income for financial institutions is reported net of interest expense and provision for credit losses. American Express Revenues is very stable at the moment as compared to the past year. American Express reported last year Revenues of 43.8 Billion
2015
2016
2017
2018
2019
2020
2021
2022
201530.83 Billion
201633.41 Billion
201734.12 Billion
201836.99 Billion
201939.98 Billion
202031.36 Billion
202143.8 Billion
202242.65 Billion

American is expecting lower volatility in August

The total risk alpha is down to -0.11 as of today. American Express exhibits very low volatility with skewness of 0.06 and kurtosis of -0.45. However, we advise investors to further study American Express technical indicators to make sure all market info is available and is reliable. 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 Implied Volatility

American Express' implied volatility exposes the market's sentiment of American Express stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if American Express' implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that American Express stock will not fluctuate a lot when American Express' options are near their expiration.

Although some firms in the credit services industry are either recovering or due for a correction, American Express may not be performing as strong as the other in terms of long-term growth potentials. With a relatively neutral outlook on the recent economy, it is better to hold off any trading of American as the current risk-reward utility is not appealing enough. 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.

Editorial Staff

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 Ellen Johnson 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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