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;
  • It is expected that in Q2 the price of the American Express Company’s stocks will rise by 3% due to efficiency of the company and the rise in the American stock market. It is expected that the rise will continue;
  • Company’s report for Q1 of the fiscal year 2016 showed that in the reporting period revenue has grown by 1.7% up to 8.09 billion USD. Net profit of the company was $1.45 per share, which exceeded the forecast by 6%;
  • This week the company will issue a report for Q2. Forecast is optimistic. It is expected that in Q2 revenue and net profit will rise by 3% and 5% respectively;
  • Financial multiples show possibility of further rise in company's stock. Effectiveness of the management is confirmed by the high operating margin (22.56%) and pure (14.64%) of profit in relation to the results of similar companies in the industry;
  • Another indicator, showing possibility of the rise in price is P/E Ratio. Amex P/E Ratio (12.75) is significantly lower than the average P/E in the industry (43.40) and in the sector (16.92).

Summary:

  • Last company’s report has increased investors’ trust to the company. Company’s positive report will contribute to the rise in the company’s stocks. American Express has strong growth potential.
  • 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: 63.15 USD and 61.60 USD.
Resistance levels: 66.65 USD and 67.70 USD.

Medium-term trading, Н4
At the moment the issuer has broken out and consolidated above resistance level of 63.15 USD. If the price maintains the mirrored support level of 63.15 USD 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 65.00 USD, 66.60 USD and 67.65 USD with the use of trailing stop.

Medium-term trading, Н4
Medium-term trading, Н4

Short-term trading М15
Yesterday the issuer is traded between the local support and resistance levels of 63.25/63.90 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




Materials published on this page are provided by LiteForex for informational purposes only and should not be construed as investment advice or advice for the purposes of 2004/39/EC Directive. In addition, these materials have not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibition on the further distribution of investment research.



Follow us in social networks!
Live Chat
Leave feedback