Important note

This AI stock analysis for American Express is not up to date. Creating and accessing our AI stock Analysis (powered by our data and Chat GPT) is only available for our premium users. Sign up to get access today!

American Express - AI Stock Analysis

Analysis generated October 17, 2024

American Express (NYSE: AXP) is a globally integrated payments company that provides a wide range of financial products and services. It is best known for its credit card, charge card, and travelers' cheque businesses. American Express is recognized for its strong brand reputation, loyal customer base, and innovative financial solutions. The company operates in over 130 countries and serves millions of card members and merchant customers around the world.

Fundamental Analysis

Analyzing the company's most recent financials reveals a mixed picture. The revenue for the last quarter stood at $15.1 billion, reflecting a decline of 15.40% compared to the previous quarter and a 9.92% decrease year-over-year. This drop in revenue may be indicative of operational challenges or a decrease in consumer spending.

Despite the revenue decline, American Express reported a net income of $3.02 billion for the last quarter, marking a significant increase of 23.72% sequentially and 38.68% year-over-year. This growth in net income suggests effective cost management and operational efficiencies. EBITDA for the last quarter was $5.59 billion, representing an increase of 3.81% from the previous quarter and a remarkable 104.35% year-over-year growth, further highlighting the company's strong profitability metrics.

The current Price-to-Earnings (P/E) ratio for American Express is 20.68. This valuation metric is within a normal range, neither signaling overvaluation nor undervaluation. Investors are advised to compare this ratio to the industry average to get a better perspective on the company's valuation.

Technical Analysis

American Express' stock price is currently $285.78, marking a rise of 7.95% compared to a month ago. This short-term upward trend is a positive sign for investors. The long-term trend is even more promising, with the stock price increasing by 90.85% year-over-year. This robust growth trajectory indicates a bullish sentiment in the market.

The Simple Moving Average (SMA10) of $276.08 is higher than the previous SMA10 of $274.88, suggesting potential upward momentum in the stock price. The Relative Strength Index (RSI) is 38.1, indicating a neutral condition. The RSI reading suggests that the stock is neither overbought nor oversold, which may signal stability.

Alternative Data Analysis

Exploring alternative data insights, American Express currently has 703 open job postings. This number has increased by 10% in the last couple of months, indicating potential growth and expansion. Employee sentiment towards the business outlook is generally neutral.

Customer acquisition metrics show that American Express has an estimated 102 million visitors to their webpage, with no significant change in recent months. However, the number of mobile app downloads stands at 6,500 per day, up by 8% recently, signaling growing customer interest and engagement.

In terms of social media presence, American Express has gained more Instagram followers, reaching 620,000, a 4% increase in recent months. However, the Twitter following remains constant at 850,000, with no significant change, suggesting mixed engagement.

Lastly, American Express has received an AI score of 59 from AltIndex, which translates to a hold recommendation. This score is derived from fundamental, technical, and alternative data analysis.

Conclusion and Recommendation

In conclusion, American Express presents a mixed bag of insights. On the one hand, the company has demonstrated robust net income and EBITDA growth despite a recent decline in revenue. The stock price exhibits a bullish trend both in the short and long term, supported by positive SI and SMA indicators. On the other hand, neutral employee sentiment and mixed customer engagement metrics warrant cautious optimism.

Given the varied nature of these insights and the AI score of 59, a hold recommendation is advisable for American Express. Investors should watch for further developments in revenue recovery and continued customer engagement before making more aggressive investment decisions.

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.