American Express Co (AXP.s) is a leading New York-based financial institution in the US that offers credit and charge payment card products and travel-related services through various segments. The company has a capitalization of $122.32B and is expected to report earnings for the fiscal quarter ending in March 2023 on Thursday 20/04 before the market opens.
During this first quarter, the S&P500 and AMEX have benefited, the first with an increase of 8.9% and the second even higher with 10.6%.
Source: NasdaqZacks positions AXP in the Rank #3 (Maintain) in the Fund 20% position #200/250 of the Financial-Miscellaneous Services industry. For this report, an EPS of $2.67 ($0.04 more than for Nasdaq) is expected with an ESP of -3.30%, marking a year-on-year reduction of -2.20% compared to $2.73. A profit of $14.01B is expected, which would be an increase of 19.42% year-on-year compared to $11.74B.
Source: money.cnnThe estimate has 2 downward revisions and 3 upward revisions in the last 60 days. AXP has a P/E ratio of 14.72 and a PEG ratio of 1.01. The company has reported results above the estimate 8 times out of the last 10 reports, the last negative last quarter and before that in October 2020.
Source: ZacksLast quarter the company reported EPS of $2.07 and revenue of $14.18B.
Regarding the forecast of the AXP share price for the next 12 months, we have the lowest forecast with a drop of -10.3% at $149.00, the highest expectation is an increase of +32.5% at $220.00, while the average price is +11.4% at $185.00.
Technical Analysis – #AMEX D1 – $165.04
AMEX has marked a bear flag pattern after creating new all-time highs at $199.50. The flag’s lows are at $130.40 coinciding with the 50% Fib at $133.23.
During the first quarter, the minimum price was $143.87, then it recovered the psychological level of $150.00 and set maximums at $182.14, although currently the price is at $165.04, testing the moving averages of 20 and 100 weekly periods.
If the pattern develops as it should, the price would have to break the down flag along with the psychological level of $150.00 and initiate the bearish distribution towards the target which is near the 88.6% Fib at $82.07. However, before this the price would meet the lows of the flag, followed by the 61.8% Fib at $117.59 and breaking through the psychological level and key support of $100.
In the event that the quarterly results come out better than expected, the price should break above the highs of $182.14 to seek all-time highs at $199.50 before falling, or create new all-time highs.
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Aldo W. Zapien
Market Analyst
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