American Express Could Face ‘Death Cross’ on Negative Earnings

American Express Company is a financial services giant and a component of the Dow Jones Industrial Average. The company offers credit cards, charge cards and travelers’ cheques in the United States and around the world. American Express is set to report first quarter earnings after the close on April 18.

Amex stock closed Tuesday at $93.86, down 5.5% year to date and 8.3% below its 2018 high of $102.38 set on Jan. 16. The stock is also in recovery mode at 7.2% above its Feb. 9 low of $87.54. The stock is underperforming the Dow 30, which is up 0.3% year to date and is 6.9% below its all-time high set on Jan. 26. The average is up 6.2% from its April 2 low.

Analysts expect Amex to post earnings per share of $1.72 when it reports results on Wednesday. Zacks Equity Research expects first quarter results to reflect increased worldwide billings for all business segments. The important credit cards billed business is estimated at $275 billion, up 9.1% year over year. A beat on this metric would be considered a positive for the stock. (See also: How American Express Makes Its Money.)

American Express reports earnings on Wednesday with an elevated P/E ratio of 32.28 with a puny dividend yield of 1.50%. …read more

Read more here: American Express Could Face ‘Death Cross’ on Negative Earnings

Category: AXP

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