Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified American Express as such a stock due to the following factors:
- AXP has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $414.1 million.
- AXP has traded 3.2 million shares today.
- AXP is trading at a new lifetime high.
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More details on AXP:
American Express Company provides charge and credit payment card products and travel-related services to customers worldwide. The stock currently has a dividend yield of 1.2%. AXP has a PE ratio of 18.6. Currently there are 6 analysts that rate American Express a buy, 2 analysts rate it a sell, and 14 rate it a hold.
The average volume for American Express has been 4.3 million shares per day over the past 30 days. American Express has a market cap of $82.1 billion and is part of the financial sector and financial services industry. The stock has a beta of 0.87 and a short float of 1% with 1.79 days to cover. Shares are up 32.3% year to date as of the close of trading on Friday.
rates American Express as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, growth in earnings per share, increase in net income and notable return on equity. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.
Highlights from the ratings report include:
- Despite its growing revenue, the company underperformed as compared with the industry average of 3.3%. Since the same quarter one year prior, revenues slightly increased by 2.6%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 28.79% over the past year, a rise that has exceeded that of the S&P 500 Index. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.
- AMERICAN EXPRESS CO has improved earnings per share by 10.4% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, AMERICAN EXPRESS CO reported lower earnings of $3.87 versus $4.08 in the prior year. This year, the market expects an improvement in earnings ($4.86 versus $3.87).
- The company, on the basis of net income growth from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and greatly underperformed compared to the Consumer Finance industry average. The net income increased by 4.9% when compared to the same quarter one year prior, going from $1,339.00 million to $1,405.00 million.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. When compared to other companies in the Consumer Finance industry and the overall market, AMERICAN EXPRESS CO's return on equity exceeds that of the industry average and significantly exceeds that of the S&P 500.
- You can view the full American Express Ratings Report.