Buy American ExpressShort Term Trading Advice by Naranj Capital
Buy American Express
● Buy Range- 232 - 236
● Target- 247 - 250
● StopLoss- 227
● Potential Return- 5-6%
● Duration- 14-15 Trading Days
AEC1 trade ideas
American Express Surges 4.33% on Earnings BeatAmerican Express, a leading financial services corporation, has released its first-quarter results for the year 2021. The company has outperformed the analyst estimates with higher-than-expected revenue, net income, and diluted earnings per share (EPS). The company's net interest income has also been higher than anticipated, thereby avoiding the fate of several other financial firms.
American Express has reaffirmed its full-year guidance for fiscal 2024, projecting significant growth in year-over-year revenue and EPS. The company has projected revenue growth of 9% to 11% and EPS of $12.65 to $13.15 for 2024.
The company's revenue of $15.8 billion in Q1 2021 has exceeded the consensus analyst estimates compiled by Visible Alpha, which was $15.76 billion. The net income of $2.44 billion and diluted EPS of $3.33 have also surpassed the estimates of $2.17 billion and $2.96 per share, respectively.
American Express has reported $3.77 billion of profit in the net interest income metric, which is higher than the market expectation of $3.66 billion. The company's CEO, Stephen Squeri, has attributed the success to the company's ability to attract high-spending, high-credit-quality customers to the franchise. The company has seen strong demand from millennial and Gen Z consumers, who accounted for over 60% of new consumer account acquisitions globally.
The company's shares initially fell 2% in pre-market trading following the earnings report's release before reversing course. The stock has gained about 20% so far this year and is currently up more than 3% at $224.48 as of 10:17 a.m. ET.
Last month, American Express ( NYSE:AXP ) announced an increase in its quarterly dividend to 70 cents per share, up from the previous mark of 60 cents.
In conclusion, American Express ( NYSE:AXP ) has exceeded the market's expectations with its Q1 2021 results and reaffirmed its full-year growth guidance for 2024. The company's ability to attract high-spending, high-credit-quality customers and strong demand from millennial and Gen Z consumers suggests a promising future for the corporation.
AXP American Express Company Options Ahead of EarningsIf you haven`t bought the dip on AXP:
Then analyzing the options chain and the chart patterns of AXP American Express prior to the earnings report this week,
I would consider purchasing the 185usd strike price Puts with
an expiration date of 2024-9-20,
for a premium of approximately $3.45.
If these options prove to be profitable prior to the earnings release, I would sell at least half of them.
AXP, THE PLATINUM CARD ISN'T ACTUALLY PLATINUMTrends and price targets marked.
Things are overextended
Potential to bounce back and catch more upside even with the overextension.
Guideline is more for backtracking, but it could potentially look something like this.
Follow trends and price targets rather than guideline, it is more to get an idea of what things could look like.
247 or so looks like a top to me especially with the trend formation
I would suggest watching a break on the lowest green support trend
and I would also suggest watching a rejection on the rejection trend.
Should we break out of rejection trend, probably 360.
Drop will be steep, but the most natural path would be the 247 drop to 80.
I would say, if you're looking to enter, wait and be patient. If there is more upside, you're not missing much. If downside is coming, there are still trend support lines that can see bounces in price, meaning, you'll likely be able to find a better entry that allows for less risk.
American Express Q4 Earnings Report: Navigating Challenges
American Express (NYSE: NYSE:AXP ) recently released its fourth-quarter earnings report, showcasing a mix of positive and challenging developments. While the financial giant reported solid earnings growth and increased quarterly dividends, concerns have surfaced regarding a notable uptick in net write-offs. This article delves into the key aspects of American Express' Q4 performance, providing a comprehensive analysis of the company's financial health, dividend strategy, and market response.
Earnings Performance:
In the fourth quarter of 2023, American Express ( NYSE:AXP ) reported net income of $1.9 billion, a substantial increase from the year-ago figure of $1.6 billion. The per-share earnings also demonstrated growth, rising from $2.07 to $2.62. Despite these positive strides, the reported earnings fell slightly short of Street estimates, with the consensus expecting $2.64 per share.
Provisions for Credit Losses:
A notable concern in the report was the 40% annualized increase in provisions for credit losses, totaling $1.4 billion. This suggests a continued rise in net write-offs, indicating potential challenges in managing credit risk. The increase in credit loss provisions has raised eyebrows among investors and analysts alike, prompting a closer examination of the company's risk management strategies.
Dividend Increase:
American Express ( NYSE:AXP ) sought to balance concerns about credit losses by announcing a 17% increase in its quarterly dividend, now set at 70 cents per share. This move is aimed at rewarding shareholders and instilling confidence in the company's financial stability. The stock market responded positively to this news, with NYSE:AXP experiencing an uptick of close to 40% from its low in late October.
Revenue and Expenses:
The Q4 report revealed consolidated total revenues net of interest expense at $15.8 billion, reflecting an 11% increase from the previous year. The growth was primarily driven by higher net interest income and increased Card Member spending. However, expenses also rose by 5%, reaching $11.9 billion, attributed to higher customer engagement costs and other factors.
Segment-wise Analysis:
Breaking down the performance by business segments, U.S. Consumer Services reported a pretax income increase, but provisions for credit losses also surged. Commercial Services and International Card Services showed mixed results, with varying impacts on credit losses and expenses. Global Merchant and Network Services reported positive growth in pretax income and revenues, while Corporate and Other faced a pretax loss.
Future Outlook:
Despite the challenges reflected in the Q4 report, American Express ( NYSE:AXP ) remains optimistic about its future. The company forecasts up to 11% annualized growth in revenue and anticipates per-share earnings in the range of $12.65 to $13.15 for Q4. This outlook exceeds analyst expectations, with consensus estimates at $12.38 per share.
Conclusion:
American Express' ( NYSE:AXP ) Q4 earnings report paints a nuanced picture of the company's performance. While grappling with increased credit losses, the strategic move to boost dividends showcases management's commitment to shareholder value. Investors are likely to closely monitor how American Express ( NYSE:AXP ) addresses the challenges highlighted in the report and executes its growth plans in the coming quarters.
AXP DOWN.As always, thank you for watching my charts and listening to my bias on this stock. I pray you and your family have a wonderful and blessed rest of your Christmas!
Here Are 2 Examples of Hourly Bear FlagsWith most equity markets soaring, there are only a few stocks I watch that have one hour bear flags. Here are 2 of them.
$AXP American Express Bullish Flag And ResistanceAMEX stock shows a good bullish moves and came to a strong support whilst forming a bullish flag. A breakout through the resistance will confirm more upward movement.
The goal of reducing 115$According to the Butterfly pattern, the Fibo perfectly converges the decline to the target of $ 115. We also go down the channel where the lower border of the channel will be. All 3 parameters should be added together. We should reach it in early 2024, there will be a great point for a hike to long. The same picture is for Viza.
🏧 Focus on American Express Co. stocks. 23/10/2023American Express Co. recorded net profit above analysts' expectations. In Q3 2023, the company's net profit reached 2.45 billion USD compared to 1.88 billion USD in Q3 2022. Market expectations were only at 2.19 billion USD. American Express is optimistic about the future and notes that current performance is much better than pre-pandemic levels.
Therefore, today, we focus on the American Express Co. (NYSE: AXP) stock chart.
On the D1 timeframe, resistance has formed at 154.79 without clear support.
On the H1 timeframe, if quotes return beyond 144.29, the short-term target for the price increase will be around 154.55; while in the medium term, it could reach 179.12.
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AXP BUY++++ and ADD on any weaknessWe have two support areas here at $140 and $135 ish I would expect a nice bounce back to $155.88 in coming weeks
AXP, BUY, -3.29% LOSSBought NYSE:AXP on 10/19/2023 near market close and closed position on 10/20/2023 at market open. Net -3.29% loss.
AMERICAN EXPRESS BULL / BEAR EARNINGS American Express Earnings
BULL TP 154 SL 149
BEAR TP 145 SL 153
NO Drama Just Trade Execute WIn LOose . get to the next trade !!
Stay Profitable
AXP American Express Company Options Ahead of EarningsAnalyzing the options chain and the chart patterns of AXP American Express Company prior to the earnings report this week,
I would consider purchasing the 155usd strike price Calls with
an expiration date of 2024-1-19,
for a premium of approximately $7.05.
If these options prove to be profitable prior to the earnings release, I would sell at least half of them.
Looking forward to read your opinion about it.
AXP ShortRising credit card rates, shrinking savings, possible recession. On the top of that, rising wedge structure broken.
AXP: Confirming Break Below Lead-In Trend at Bearish Crab PCZAmerican Express has broken below the Lead-In trend line and looks to be confirming a lower high below the breakdown zone, all at the PCZ of a Bearish Crab on the Weekly Timeframe.
If we get the desired performance from this we should see AXP go down about 30-60% from the current levels.
#AXP trade plan if stock goes downBIG MONEY likes this plan! This guys use PUT options out-of-money to form safe LONG position. They will not lose money if the market goes in the opposite direction. It's amazing! Let's see.
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AXP - BEARISH SCENARIOAmerican Express experienced a decline in its stock price on Thursday following a rating downgrade by a Wall Street firm. Several analyzers lowered their rating on American Express stock from Outperform to Neutral/high risk. This change comes after maintaining the Outperform rating for over a year. Despite the downgrade, Baird kept its price target for the stock at $185, indicating a minimal gain of 6% based on the previous day's closing price.
The rationale behind the downgrade is partly based on the net interest margin, which represents the difference between the interest income generated and the interest paid by the company to lenders. The expectation is that American Express's net interest margin will be weaker compared to broader estimates for the second quarter. This is primarily attributed to a shift in the funding mix and rising deposit costs.
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Almost Ready for Next Wave Up1) In an Uptrend - higher highs and higher lows - since early May (along with broader market) but more importantly has done so in the face of downward pressure on banks/financials
2) Retraced 38% of entire move up from May lows. Potentially has a bit further down to 50-61% retracement area before next wave up
3) Longer-term Parabola structure (on weekly chart) sets of for breakout from cup pattern to new highs later this year
American Express ($APX): Elliott Waves Analysis and Sell SetupThe American Express ($AXP) Main Trend is absolutely bullish, therefore we currently consider all descents as simple corrective structures of the trend in play. But why am I saying that? Because when you decide to take a position not following the trend, the risk is high, so logic tells us to use a smaller size, at least initially (...there's always time to increase it!). Having said that, the strategy I want to share with you is very simple: "Try to take a short position on breakout" , with stop loss above the previous swing (don't look at the levels on the chart, they are only indicative at the moment). Of course, a second option (yellow arrow) is also possible, but to do this you would need to be a little more expert. The potential target areas are the first around 119.50 and the second around 106.50 (my favorite).
Looking at the chart above (daily time frame) we can see how the potential short trade also has a good Risk/Reward ratio, and this makes this trade interesting.
I also take the opportunity to thank every Trader who supported me in the last setups on Stocks Market:
$AMAZON BULLISH SETUP
(Click and Play on Chart below)
$TESLA BEARISH SETUP
(Click and Play on Chart below)
Trade with care! 👍 ...and if you think that my analysis is useful, please..."Like, Share and Comment" ...thank you! 💖
Cheers!
N.B.: Support my idea for next updates below 🚀
$AXP with a bullish outlook following its earnings #StocksThe PEAD projected a bullish outlook for NYSE:AXP after a negative over reaction following its earnings release placing the stock in drift C .
AXP: Buy ideaAs you see on the chart we have the breakout of vwap and also the breakout of the resistance line so it's mean that we will have a big probability to have an uptrend.Thanks!
