AXP stock: buy or sell
Updated on:
Jan 16th, 2021
2
AXP stock brief
- American Express closed on Friday at $122.15 after going down a -1.32% breaking a streak of 3 sessions in positive.
- The stock is configuring an uptrend pattern since last October, when it bottomed at $88.80. This rally marked a 37.56% gain
- American Express Company, together with its subsidiaries, provides charge and credit payment card products, and travel-related services worldwide.
Should I buy American Express stock?
Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best
Is $AXP stock a buy?
Currently, American Express stock matches one trading strategy:
Uptrend buy setup
American Express stock continues to trend higher since last October and has marked a gorgeous 37.56% gain. Price marked a pull back in this uptrend at $113.32 in mid-December, and since then it bounced off a 7.79%. Now, it's just 2.23% away from breaking out over its last top and resume the uptrend. The new buy point is therefore at $124.88. If you decide to enter this trade, the suggested stop loss is at $112.39
| Buy setup | Buy point | Stop loss | Risk |
| Uptrend buy setup | $124.88 | $112.39 | 10.00% |
Should I sell American Express stock?
"To sell or not to sell", if you are holding American Express stock?. Trading strategies prevent us from making rash decisions based on our moods or the buzz that surrounds the market. When selling, as well as buying, our setups are very simple to follow and are only valid for selling stocks you already own, not for shorting $AXP stock
A golden rule is that you should never keep an investment that leads to greater losses than those expected by the time of purchase. When to sell your stock should always be ruled by the stop-loss (automatic or manual)
Is it time to sell American Express stock?
Currently, American Express stock doesn't match any of our preferred sell setups, so if you own American Express stock and your operation is in profit probably is not time to sell now
American Express ratings
In the last month, 2 brokerage ratings were published for American Express. General sentiment is bullish, with 2 out of 2 publishing positive outlooks
| Brokerage firm | Rating |
|---|---|
| Jan 4th, 2021 | |
| Wells Fargo & Company | Buy |
| Jan 6th, 2021 | |
| Deutsche Bank Aktiengesellschaft | |
American Express stock analysis
American Express shares started an uptrend last October, and gained a gorgeous 37.56%. Rising tops and bottoms can be seen easily on a chart and how price action offered very few entry points on the breakouts. Latest low was in mid-December, when price bounced at $113.32. Like in all uptrends, price needs to rest and currently price is consolidating the gains in a range between $124.88 and $113.32
SMAs overview
Supports and resistances
The current resistance levels are:
The current supports are:
Bollinger bands
Since the price surpassed the upper band on Thursday, the price has been corrected downwards by 1.89%. The price is moving very close to the upper Bollinger band, signaling some level of overbought in recent sessions. This is not a bearish indicator, as price can move in these levels for many days and weeks
Relative strength index
The RSI dropped below the overbought level of 70 last November after just crossing to the overbough zone for just one day (weak signal). The RSI reading on Friday was 57.65. Since then, American Express stock skyrocketed a 4.44%
American Express stock price history
American Express IPO was on Feb 21st, 1973 priced at $1.35 per share1. Since then, AXP stock surged by 8,948.15%, with an average of 190.39% per year. An investment of thousand dollars at that time would be valued $90,481.48 today.
1: Adjusted price after possible price splits or reverse-splits
Price target for American Express stock
How much a stock will be priced tomorrow or next week is quite unpredictable. Banks and financial organisations post their analysis forecasting how a stock will performance in the future.
Along with buy or sell recommendations, brokerage institutions post their price forecasts based on the stock price action and the company fundamental data. Most of these forecasts follow the release of new financial data by the company, and usually. If you are a small trader you should not invest based on these predictions.
There are 2 price forecasts released for American Express that average $140.50. American Express closed at $122.15 on Friday, so the target price is predicting a growth by 15.02%.
| Brokerage firm | Price target |
|---|---|
| Jan 4th, 2021 | |
| Wells Fargo & Company | $130.00 → $150.00 |
| Jan 6th, 2021 | |
| Deutsche Bank Aktiengesellschaft | $108.00 → $131.00 |
Earnings and financials
Last October, American Express ($AXP) had the quarterly earnings event and posted the report. AXP presented earnings of $1.30 per share on sales of $8.8 billion. The consensus earnings estimate was $1.33 per share on revenue of $8.7 billion.
By comparison, the EPS for the same quarter last year was $2.08, so current EPS is a drop of -37.50%. Turnover dropped a -20.02% on an annualized basis in the , from $101.1B to $80.9B last quarter.AXP ($AXP) will host the quarterly earnings call next Friday. Market analysts analysts expect of $1.29, that is a 0.77% lower than previous quarter.
American Express performance
| Company | 1m | 3m | 6m |
|---|---|---|---|
| American Express ($AXP) | 3.10% | 17.10% | 29.80% |
Important:
The thoughts contained in this post are personal and should not be followed as recommendations for you to buy or sell shares. The author of this report does not know the particular scenarios of the reader, his or her finances or what is in his or her best interest at any given time. All users should speak with their financial advisor before buying or selling any securities Comments are expressed for informational purposes onlyAXP summary
| Friday, January 15th, 2021 | |
|---|---|
| Open | $122.48 |
| Close | $122.15 |
| Day range | $121.71 - $122.86 |
| Previous close | $123.78 |
| Session gain | -1.32% |
| Average true range | $3.50 |
| 50d mov avg | $117.23 |
| 100d mov avg | $108.83 |
| 200d mov avg | $100.77 |
| Earnings date | January 22nd, 2021 |