Dow Today: American Express (AXP) Higher

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 146 points (+1%) at 14,273 as of Tuesday, Mar 5, 2013, 11:35 a.m. ET. During this time, 232.4 million shares of the 30 Dow components have changed hands vs. an average daily trading volume of 626.5 million. The NYSE advances/declines ratio sits at 2,299 issues advancing vs. 574 declining with 135 unchanged.
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The Dow component leading the way higher looks to be American Express (NYSE: AXP), which is sporting a $1.22 gain (+1.9%) bringing the stock to $64.11. This single gain is lifting the Dow Jones Industrial Average by 9.23 points or roughly accounting for 6.3% of the Dow's overall gain. Volume for American Express currently sits at 2.8 million shares traded vs. an average daily trading volume of 5.6 million shares.

American Express has a market cap of $68.9 billion and is part of the financial sector and financial services industry. Shares are up 9.4% year to date as of Monday's close. The stock's dividend yield sits at 1.3%.

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 16, 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 revenue growth, solid stock price performance and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

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