Oct 18, 2024, 1:13 PM
Oct 17, 2024, 10:22 AM

American Express Faces Downside Ahead of Q3 Earnings Release

Provocative
Highlights
  • American Express is set to report its third-quarter earnings today, with expectations for earnings per share of $3.80 and revenues of $16.67 billion.
  • The company's stock has risen 84.29% in the past year, trading at $281.68, supported by strong bullish technical indicators according to market analysis.
  • Despite its impressive performance, analysts project a 7% downside with a neutral rating, suggesting potential caution for investors.
Story

Today marks the third-quarter earnings report for American Express Co. in the United States, which is highly anticipated by investors and analysts alike. The company is expected to deliver earnings of $3.80 per share and generate revenues totaling $16.67 billion. This earnings report comes at a time when the stock has impressively risen by 84.29% over the past year, reflecting strong market performance. Presently, American Express shares are trading at $281.68, indicating robust market activity backed by positive technical indicators. The positive signals from technical analysis suggest that American Express is experiencing significant buying pressure, as evidenced by its trading position above key moving averages and a bullish momentum reflected in various market indicators. However, potential concerns are raised by the RSI approaching overbought territory, which could imply a short-term pullback, highlighting the need for investors to stay vigilant. Furthermore, the consensus among analysts is rather cautious, providing a neutral rating for the stock along with an average price target of $228.60. Such projections imply an anticipated downside of around 7%, suggesting that, while the stock has performed well, analysts believe that the price might stabilize or decline in the near term. In light of these mixed signals, investors are encouraged to monitor American Express closely as it navigates through a pivotal earnings report, which may greatly impact future stock performance and market sentiment.

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