American Express (AXP, Financial) stock saw an increase of 1.84%, reflecting positive momentum as analysts raised their price targets. This performance contrasts with the S&P 500's slight dip, driven by optimism surrounding AXP's future potential.
The stock is currently priced at $293.08, with a market capitalization of $206,458.71 million USD. American Express boasts a price-to-earnings (P/E) ratio of 21.57, reflecting its robust earnings performance. The company's Piotroski F-Score is high, at 7, indicating strong financial health, while the Beneish M-Score of -2.49 suggests it is unlikely to be a manipulator.
Despite the stock trading near its 10-year high price and price-to-book (P/B) ratio, American Express is considered "Modestly Overvalued" based on its GF Value of $237.84. Meanwhile, American Express has an impressive return on equity (ROE) of 34.49%, showcasing its effectiveness in generating profits from shareholders' equity.
The company's revenue growth rate is robust, with a 3-year revenue growth rate ranking it high in its industry. Additionally, American Express has shown consistent revenue and earnings growth, attributing to a high level of predictability with a score of 5.
However, caution is advised as the stock's dividend yield is close to a 10-year low, and there have been insider selling activities over the past three months. Despite these warning signs, the company maintains a strong financial standing, supported by consistent growth in revenue per share.
With various analysts, including Jeff Adelson of Morgan Stanley, raising their price targets for AXP, and Monness, Crespi & Hardt maintaining a buy rating at a $330 target, American Express remains a stock to watch for potential investors.
