American Express Co (AXP): Today's Featured Financial Services Winner

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

American Express ( AXP) pushed the Financial Services industry higher today making it today's featured financial services winner. The industry as a whole closed the day up 0.6%. By the end of trading, American Express rose $0.78 (1.1%) to $68.41 on average volume. Throughout the day, 4,562,707 shares of American Express exchanged hands as compared to its average daily volume of 5,501,300 shares. The stock ranged in a price between $67.60-$68.48 after having opened the day at $67.88 as compared to the previous trading day's close of $67.63. Other companies within the Financial Services industry that increased today were: First Marblehead Corporation ( FMD), up 8.8%, Invesco ( IVZ), up 6.8%, Consumer Portfolio Services ( CPSS), up 4.5% and WisdomTree Investments ( WETF), up 4.1%.
  • EXCLUSIVE OFFER: Jim Cramer's Protege, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

American Express Company provides charge and credit payment card products and travel-related services to customers worldwide. American Express has a market cap of $75.1 billion and is part of the financial sector. The company has a P/E ratio of 17.2, below the S&P 500 P/E ratio of 17.7. Shares are up 17.9% year to date as of the close of trading on Monday.

TheStreet Ratings rates American Express as a buy. The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth, solid stock price performance, growth in earnings per share 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.

On the negative front, US Global Investors ( GROW), down 7.5%, Gleacher ( GLCH), down 7.1%, Pzena Investment Management ( PZN), down 5.5% and PowerShares DB Agriculture Double Short ETN ( AGA), down 5.3%.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the financial services industry could consider Financial Select Sector SPDR ( XLF) while those bearish on the financial services industry could consider Proshares Short Financials ( SEF).

Exclusive Offer: Jim Cramer's 'go-to' small/mid-cap guru Bryan Ashenberg only buys stocks he thinks could return 50-100%. See his top picks for 14-days FREE.

null

More from Markets

Lowe's Snags Ex-Home Depot Exec as CEO; ISPs Face Competitive Threat -- ICYMI

Lowe's Snags Ex-Home Depot Exec as CEO; ISPs Face Competitive Threat -- ICYMI

Dow Slips 178 Points; S&P 500 and Nasdaq Also Decline

Dow Slips 178 Points; S&P 500 and Nasdaq Also Decline

Legal Weed Sales in California Are Off to a Less Than Smokin' Start

Legal Weed Sales in California Are Off to a Less Than Smokin' Start

Owner of Moviepass Sees Stock Plummet

Owner of Moviepass Sees Stock Plummet

Ford, GM Gain as China Slashes Auto Import Tariffs

Ford, GM Gain as China Slashes Auto Import Tariffs