American Express Stock Alpha and Beta Analysis

AXP Stock  USD 227.75  3.29  1.47%   
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as American Express. It also helps investors analyze the systematic and unsystematic risks associated with investing in American Express over a specified time horizon. Remember, high American Express' alpha is almost always a sign of good performance; however, a high beta will depend on investors' risk tolerance level and may signal increased volatility and potential future overvaluation. Key technical indicators related to American Express' market risk premium analysis include:
Beta
1.15
Alpha
0.18
Risk
1.32
Sharpe Ratio
0.25
Expected Return
0.33
Please note that although American Express alpha is a measure of relative return and represented here as a single number, it indicates the percentage above or below your selected benchmark (i.e., NYSE Composite index.) So in this particular case, American Express did 0.18  better than the index. Remember, a high alpha is always good. Beta, on the other hand, measures the volatility (or risk) of an investment. It is an indication of American Express stock's relative risk over its benchmark. American Express has a beta of 1.15  . American Express returns are very sensitive to returns on the market. As the market goes up or down, American Express is expected to follow. As of 03/28/2024, Price Book Value Ratio is likely to drop to 2.96. In addition to that, Enterprise Value Multiple is likely to drop to 9.38.

American Express Quarterly Cash And Equivalents

38.73 Billion

Alpha is a measure of relative performance on a risk-adjusted basis, while beta measures volatility against the benchmark. The goal is to know if an investor is being compensated for the volatility risk taken. The return on investment might be better than its reference but still not compensate for the assumption of the risk.
  
Check out American Express Backtesting, American Express Valuation, American Express Correlation, American Express Hype Analysis, American Express Volatility, American Express History and analyze American Express Performance.
To learn how to invest in American Stock, please use our How to Invest in American Express guide.

American Express Market Premiums

Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. American Express market risk premium is the additional return an investor will receive from holding American Express long position in a well-diversified portfolio. The market premium is part of the Capital Asset Pricing Model (CAPM), which most analysts and investors use to calculate the acceptable rate of return on investment in American Express. At the center of the CAPM is the concept of risk and reward, which is usually communicated by investors using alpha and beta measures. Alpha and beta are two of the key measurements used to evaluate American Express' performance over market.
α0.18   β1.15

American Express expected buy-and-hold returns

Although buy-and-hold investment strategy may not appeal to all investors, it may be used as a good measure of American Express' Buy-and-hold return. Our buy-and-hold chart shows how American Express performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.

American Express Market Price Analysis

Market price analysis indicators help investors to evaluate how American Express stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading American Express shares will generate the highest return on investment. By understating and applying American Express stock market price indicators, traders can identify American Express position entry and exit signals to maximize returns.

American Express Return and Market Media

The median price of American Express for the period between Fri, Dec 29, 2023 and Thu, Mar 28, 2024 is 210.89 with a coefficient of variation of 7.77. The daily time series for the period is distributed with a sample standard deviation of 15.94, arithmetic mean of 205.07, and mean deviation of 14.23. The Stock received substential amount of media coverage during this period.
 Price Growth (%)  
       Timeline  
 
American Express dividend paid on 9th of February 2024
02/09/2024
1
Stack points chain layer-3 aims to bring loyalty points to Base
03/13/2024
2
Indian travellers outpace global peers in spontaneous travel craze 84 percent go solo, 58 percent pick impromptu trips Amex
03/18/2024
3
INTERVIEW Benzinga Sits Down With Diversified Holding Company 1847s CEO To Discuss The Companys Wins, Its Strategies For Success And More
03/20/2024
4
12 things to know about parking, policies, refunds at the new amphitheater in Macon
03/21/2024
5
American Express Plans Live Audio Webcast of First-Quarter 2024 Earnings Conference Call and Annual Meeting of Shareholders
03/22/2024
6
Amex GBT to Acquire Global Business Travel Solutions Provider CWT
03/25/2024
7
Feds seek assets allegedly derived in colossal heist targeting wealthy Oregon publisher
03/27/2024

About American Express Beta and Alpha

For many years both, Alpha and Beta indicators are used by professional money managers as critical performance measurement tools across virtually all financial instruments including American or other stocks. Alpha measures the amount that position in American Express has returned in comparison to a selected market index or another relevant benchmark. In other words, Alpha is the excess return on an investment relative to the performance of your selected benchmark. Beta, on the other hand, measures the relative risk of your investment.
 2021 2022 2023 2024 (projected)
Price Earnings Ratio16.0114.7716.4413.38
Short Term Coverage Ratios7.3221.0814.3515.07

American Express Upcoming Company Events

As portrayed in its financial statements, the presentation of American Express' financial position is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, American Express' leadership is honest, while the outside auditors are strict and uncompromising. Whatever the case, investors should always follow all of American Express' public filing events to personally review all filings and be reasonable and skeptical to interpret all of the financial statements of American Express. Please utilize our Beneish M Score to check the likelihood of American Express' management manipulating its earnings.
18th of April 2024
Upcoming Quarterly Report
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19th of July 2024
Next Financial Report
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31st of March 2024
Next Fiscal Quarter End
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24th of January 2025
Next Fiscal Year End
View
31st of December 2023
Last Quarter Report
View
31st of December 2023
Last Financial Announcement
View

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When determining whether American Express is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if American Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about American Express Stock. Highlighted below are key reports to facilitate an investment decision about American Express Stock:

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When running American Express' price analysis, check to measure American Express' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy American Express is operating at the current time. Most of American Express' value examination focuses on studying past and present price action to predict the probability of American Express' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move American Express' price. Additionally, you may evaluate how the addition of American Express to your portfolios can decrease your overall portfolio volatility.
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American Express technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.
A focus of American Express technical analysis is to determine if market prices reflect all relevant information impacting that market. A technical analyst looks at the history of American Express trading pattern rather than external drivers such as economic, fundamental, or social events. It is believed that price action tends to repeat itself due to investors' collective, patterned behavior. Hence technical analysis focuses on identifiable price trends and conditions. More Info...