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.

Trade-Ideas LLC identified American Express ( AXP) as a pre-market laggard 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 $409.9 million.
  • AXP traded 40,671 shares today in the pre-market hours as of 9:04 AM.
  • AXP is down 2.6% today from yesterday's close.

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More details on AXP:

American Express Company, together with its subsidiaries, provides charge and credit payment card products and travel-related services to consumers and businesses worldwide. The company operates through four segments: U.S. The stock currently has a dividend yield of 1.3%. AXP has a PE ratio of 14.3. Currently there are 9 analysts that rate American Express a buy, 4 analysts rate it a sell, and 8 rate it a hold.

The average volume for American Express has been 8.2 million shares per day over the past 30 days. American Express has a market cap of $80.7 billion and is part of the financial sector and financial services industry. The stock has a beta of 1.25 and a short float of 1.1% with 1.79 days to cover. Shares are down 14.3% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates American Express as a buy. The company's strengths can be seen in multiple areas, such as its increase in net income, notable return on equity, good cash flow from operations, growth in earnings per share and reasonable valuation levels. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Consumer Finance industry average. The net income increased by 10.6% when compared to the same quarter one year prior, going from $1,308.00 million to $1,447.00 million.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength 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.
  • Net operating cash flow has significantly increased by 598.83% to $2,404.00 million when compared to the same quarter last year. In addition, AMERICAN EXPRESS CO has also vastly surpassed the industry average cash flow growth rate of 262.22%.
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 6.6%. Since the same quarter one year prior, revenues slightly dropped by 2.4%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • AMERICAN EXPRESS CO has improved earnings per share by 14.9% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, AMERICAN EXPRESS CO increased its bottom line by earning $5.55 versus $4.88 in the prior year. For the next year, the market is expecting a contraction of 0.9% in earnings ($5.50 versus $5.55).

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