American Express (NYSE:AXP) double up

We analyze the latest news coming out of American Express and provide some quick analysis for investors interested in NYSE:AXP stock. American Express (NYSE:AXP) stocks stood at 46.77 as of 4/22/2010 signifying a +0.78 – +1.70% change over the previous trading day.

In a very strong sign that consumers are recovering from the global financial crisis, American Express Co. (NYSE:AXP) posted Q1 profits that are double that of the same period last year. Consumer spending has increased, and confidence in credit is increasing once again. After-hours trading saw the stock value up nearly 2%.

American Express (NYSE:AXP) Basic Analysis

As with any basic stock analysis, let’s begin with the P/E. AXP’s current P/E stands at 29.3 – worse than the average across the industry of 26.8. Forecastors suggest that AXP’s forward P/E is around 14.39, so that’s a plus compared to the trailing P/E. Another variable to consider is the PEG ratio – where American Express ‘s 2 ratio makes it technically overvalued and worse off than the industry’s average 5 year PEG ratio of 1

American Express (NYSE:AXP) Analyst Opinion

The overall analyst opinion for AXP is a Hold, with a current 2.13 mean recommendation (with 1 being a strong buy, and 5 being a strong sell). The same average score 3 months ago was 2.25. Investment research firm Zacks gives American Express a 1 out of 26 rank in the industry.

Also worth sharing is the shares’ grades from MSN Money across the following areas:

Technical Grade: A
Valuation Grade:F
Fundemental Grade:B
Return Grade:B
Risk Grade: A

Finally, no matter whether you decide to sell, hold or buy American Express (NYSE:AXP) shares, make sure you make the trade at the right price. Timing the market or technical analysis is often a fruitless exercise, but do take into account the price history:

Price History
Last Price: 46.77
52 Week Low / High: 18.51 / 46.68
50 Day Moving Average: 40.51
6 Month Price Change %: 29.0%
12 Month Price Change %: 118.0%

We will be monitoring the AXP (NYSE:AXP) share price for changes over the next couple of weeks.