Is American Express price going to go nuts in June?

In this post I will recap American Express. I will cover the possibilities of making American Express into a steady grower in June. What is American Express Target Price Odds to finish over Current Price? Contingent on normal probability distribution, the odds of American Express to move above current price in 30 days from now is about 14.44%. The American Express Company probability density function shows the probability of American Express Stock to fall within a particular range of prices over 30 days . Considering 30-days investment horizon, American Express has beta of 0.8856 . This suggests American Express Company market returns are highly reactive to returns on the market. As the market goes up or down, American Express is expected to follow. Additionally, the company has an alpha of 0.165 implying that it can potentially generate 0.165% excess return over S&P 500 after adjusting for the inherited market risk (beta).
Published over a year ago
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Reviewed by Rifka Kats

The company has 61.37B in debt with debt to equity (D/E) ratio of 276.2 . This implies that the company may be unable to create cash to meet all of its financial commitments. This firm dividends can provide a clue to current valuation of the stock. American Express one year expected dividend income is about $0.72 per share. Earning per share calculations of the stock is based on official Zacks consensus of 10 analysts regarding American Express future annual earnings. Given the historical accuracy of 96.46%, the future earnings per share of the company is estimated to be 5.7863 with lowest and highest values of 5.7 and 6.05 respectively. Please note that this consensus of annual earnings estimates for the organisation is an estimate of EPS before non-recurring items and including employee stock options expenses.
What is the right price you would pay to acquire a share of American Express? For most investors, it would be the price that gives them a wide margin of safety to have minimal downside risk. In other words, most investors are always looking for undervalued stocks. Even if the future performance is not entirely as expected, the loss of holding it is minimized, and the downside risk is negated. Please read more on our stock advisor page.

What is happening with American Express this year

Annual and quarterly reports issued by American Express are formal financial statements that are published yearly and quarterly and sent to American stockholders. The reports show and break down the current year's ongoing operations and discuss plans for the upcoming year. Annual reports have been a requirement from the Securities and Exchange Commission (SEC) for businesses owned by the public since 1934.
Companies such as American Express often view their annual report as an effective marketing tool to disseminate their perspective on company future earnings or innovations. With this in mind, many companies devote large sums of money to making their reports attractive and informative. In such instances, the annual report becomes a forum through which a company can communicate to the general public any number of topics that may or may not be directly related to the actual data published in the reports.

American Express Gross Profit

American Express Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing American Express previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show American Express Gross Profit growth over the last 10 years. Please check American Express' gross profit and other fundamental indicators for more details.

Details

American Express has 61.37B in debt with debt to equity (D/E) ratio of 276.2 . This implies that American Express may be unable to create cash to meet all of its financial commitments. The entity has Current Ratio of 1.84 which is typical for the industry and considered as normal. The modest gains experienced by current holders of American Express could raise concerns from investors as the firm closed today at a share price of 118.33 on 404254 in volume. The company directors and management have been quite successful with maneuvering the stock at opportune times to take advantage of all market conditions in April. The stock standard deviation of daily returns for 30 days (very short) investing horizon is currently 0.9266. The very small Stock volatility is a good signal to investors with longer term investment horizons. American Express maintains price to earning of 15.16x. American Express is selling for 118.46. This is 0.0253% increase. Opened at 118.46. American Express Payment of Dividends and Other Cash Distributions is very stable at the moment. Also, American Express Gross Profit is very stable at the moment.
 2018 2019 (projected)
American Express Interest Expense 936,100,000  1,108,828,947 
American Express Gross Profit 27,083,700,000  25,510,000,000 
Taking everything into account, we believe that at this point American Express is overvalued with below average probability of distress within the next 2 years. Our immediate buy-hold-sell recommendation on the corporate body is Strong Buy.

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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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