American Express (AXP) is gearing up to report its third-quarter earnings on October 18th, and investors are eagerly awaiting the results. Wall Street analysts are anticipating strong performance, projecting earnings per share of $3.80 and revenues of $16.67 billion. The company will be reporting before market hours.
Looking at the stock’s recent performance, AXP has seen a remarkable surge, up 84.29% over the past year and 51.1% year-to-date. This impressive growth has captured attention, but the question on everyone’s mind is: can this momentum continue?
To delve deeper into the company’s prospects, we turn to the technical indicators. The charts paint a picture of strong bullish momentum for American Express stock. The stock is currently trading above its key moving averages – the five-day, 20-day, and 50-day exponential moving averages. This indicates a significant buying pressure and a potential for continued upward movement.
Further reinforcing the bullish outlook, American Express’ stock price is above its eight-day SMA of $275.54 and the 20-day SMA of $272.03. Additionally, the 50-day SMA at $259.88 and the 200-day SMA at $232.73 are well below the current price, further solidifying the positive trend.
Adding to the bullish sentiment, the MACD indicator is at 5.32, signaling further potential for American Express stock. However, it’s crucial to exercise caution as the RSI stands at 67.74, nearing the overbought territory. This could suggest a short-term pullback, a temporary decline in price, in the near future.
Despite the potential for a pullback, the Bollinger Bands indicate that the stock remains in a bullish phase, trading within the upper bullish band.
While the technical indicators present a mixed picture, with both bullish and cautious signals, it’s essential for investors to closely monitor these signals as the stock approaches a potential breakout.
Analyst sentiment towards American Express stock is currently mixed. The consensus analyst rating stands at Neutral, with a price target of $228.60. Recent analyst ratings from Morgan Stanley, Monness, Crespi, Hardt, and Barclays have set an average price target of $266, implying a downside potential of 6.54% for the stock.
As American Express prepares to release its third-quarter earnings, investors will be closely watching to see if the company can meet or exceed Wall Street’s expectations and whether the stock can sustain its bullish momentum in the face of potential overbought conditions and analyst concerns.
