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The credit card giant’s shares had previously reached a peak of $182.15 on February 14th but had since seen some decline. On Thursday, however, American Express managed to outshine its competitors such as JPMorgan Chase (NYSE:JPM) and Visa (NYSE:V) in terms of percentage gains for the day. Despite this achievement, trading volume for American Express was still below 50-day average, with about 434,683 fewer shares changing hands compared to its typical activity level.
Investors tracking the performance of financial services stocks took note of American Express’s movement as an indicator of potential sector momentum. The company’s ability to outperform rivals in a challenging market environment suggests resilience and investor confidence in its business model and growth prospects.
The broader market’s rise on Thursday provided a favorable backdrop for stocks like American Express that had been under pressure in recent sessions. As market participants continue to assess economic indicators and corporate earnings reports, movements in shares of financial institutions remain a focal point for understanding the health of the consumer finance sector.
American Express Co. not only showed resilience in the latest trading session but also presents a compelling case for long-term investors when considering the metrics and InvestingPro Tips. With a robust market capitalization of $122.89 billion and a P/E ratio that has adjusted to a more attractive figure of 15.02 from the last twelve months as of Q3 2023, the company stands as a prominent player in the Consumer Finance industry.
Investors may find the company’s high return on invested capital and its consistent dividend payments, which have been maintained for 53 consecutive years, as indicators of American Express’s financial health and management’s confidence in its future. Additionally, the company’s revenue growth of 9.58% over the last twelve months as of Q3 2023, coupled with a solid gross profit margin of 55.91%, reinforces the company’s strong position in the market.
Two particularly valuable InvestingPro Tips for those considering American Express as an investment are the company’s high earnings quality, with free cash flow exceeding net income, and the fact that analysts predict the company will be profitable this year. These insights suggest that American Express is not only managing its finances well but is also expected to maintain its profitability in the near term.
For those interested in a deeper dive into the financials and future outlook of American Express, there are additional 12 InvestingPro Tips available, which could further inform investment decisions. As part of a special Cyber Monday sale, InvestingPro subscriptions are currently available with a discount of up to 60%. Moreover, using the coupon code sfy23, readers can get an additional 10% off a 2-year InvestingPro+ subscription, offering an even greater value for those looking to access comprehensive financial analysis and market insights.
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