Dow Today: American Express (AXP) Lower - TheStreet

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model

.

The

Dow Jones Industrial Average

(

^DJI

) is trading up 16 points (+0.1%) at 13,429 as of Thursday, Sep 27, 2012, 11:35 a.m. ET. During this time, 205.3 million shares of the 30 Dow components have changed hands vs. an average daily trading volume of 578.1 million. The NYSE advances/declines ratio sits at 1,915 issues advancing vs. 1,005 declining with 100 unchanged.

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Holding back the Dow today is

American Express

(NYSE:

AXP

), which is lagging the broader index with a six-cent decline to $56.08. Volume for American Express currently sits at 2.3 million shares traded vs. an average daily trading volume of five million shares.

American Express has a market cap of $64.77 billion and is part of the

financial

sector and

financial services

industry. Shares are up 19% year to date as of Wednesday's close. The stock's dividend yield sits at 1.4%.

American Express Company provides charge and credit payment card products and travel-related services to customers worldwide. The company has a P/E ratio of 13.4, equal to the average financial services industry P/E ratio and below the S&P 500 P/E ratio of 17.7.

TheStreet Ratings rates American Express as a

buy

. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, increase in net income, revenue growth, notable return on equity and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

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