2016-07-22 14:04:05

American Express Company, #AXP [NYSE]
Finance, Loan facilities, USA

Financial performance of the company:
Index – DJIA, S&P 500;
Beta – 1.10;
Capitalization – 53.13 В;
Return on asset – 3.20%;
Income – 5.06 В;
Average volume – 7.78 М;
P/E – 12.75;
ATR – 1.65.

Analytical review:

  • The company ranks the third on capitalization in the sector of “Loan facilities” among the issuers traded in the American stock market;
  • On 20 July the company issued report for Q2 of the fiscal year 2016. According to press-release, company’s revenue fell by 1% to 8.24 billion USD due to pressure from the strong USD. Net profit of the company rose up to $2.10 per share against $1.42 for the same period a year ago;
  • At the press-conference Company’s management stated that the performance of the company has improved by the introduction of the cost reduction program. During the reporting period, AmEx reduced costs by 15% to 4.8 billion USD. The company also plans to increase the number of card users by 3 million;
  • AmEx will be attractive for long-term investment strategies. The company duly pays off dividends to the shareholders. Dividend yield of the company (1.80%) much higher than that of the similar companies in the industry (1.14%). The company intends to increase dividends by 10%;
  • By the middle of the financial year 2017, the company plans to repurchase shares for the amount of 3.3 billion USD. This program shows optimistic sentiment of the company’s management about future development of the company;
  • AmEx confirmed previous forecast despite pressure from the stronger USD and recent Brexit. It is expected that during the financial year 2016 net profit of the company will be at the level of $5.4-$5.7 per share.


  • Company’s last report showed that company’s management is on the right track. American Express has strong growth potential. Company’s positive report will contribute to the rise in the company’s stocks;
  • It is likely that in the near future company’s quotes will go up.

Trading tips for CFD of American Express Company

Key levels:
Support levels: 63.25 USD and 61.45 USD.
Support levels: 64.75 USD and 66.50 USD.

Medium-term trading, Н1
At the moment the issuer is traded at the support level of 63.25 USD. If the price maintains this level and in case of the respective confirmation (such as pattern Price Action), we recommend to open long positions. Risk per trade is not more than 2% of the capital. Stop order can be placed slightly below the signal line. Take profit can be placed in parts at the levels of 64.70 USD, 65.50 USD and 66.50 USD with the use of trailing stop.

Medium-term trading, Н1
Medium-term trading, Н1

Short-term trading М15
Yesterday the issuer is traded between the local support and resistance levels of : 63.05/63.65 USD. It is advisable to enter the market after breaking out and testing of these levels. Positions can be opened towards the signal line and the nearest support/resistance levels. Risk per trade is not more than 3% of the capital. Stop order can be placed slightly above/below the signal line. Take profit can be placed in parts of 50%, 30% and 20% with the use of trailing stop.

Short-term trading М15
Short-term trading М15