American Express oversold and looking to bounce
Credit card issuer and processor American Express (NYSE: AXP) has performed very well in recent years in terms of its fundamental statistics. The company has seen earnings grow by an average of 18% per year over the last three years and it saw 13% growth in its EPS in the second quarter. Sales have grown by 11% per year in the last three years and they were up 9% in the second quarter.
The company boasts a return on equity of 31.7%, a profit margin of 18.8%, and an operating margin of 21.3%.
Looking at some valuation indicators from the Tickeron fundamental analysis overview, we see a price to book ratio of 4.35 and a P/E ratio of 14.96. The price to book ratio is slightly above the P/B ratio of the S&P 500 while the P/E ratio is below the current P/E of the S&P.
The stock has fallen over the last few weeks and it dropped below its 50-day moving average for the first time since January as a result. You can see that a trend channel has formed on the stock that goes back to the low in December. This particular channel is formed more by the upper rail connecting the highs from each month and the parallel lower rail connects the December low with the low from August 5.
The 10-day RSI hit oversold territory this week and the daily stochastic readings also reached oversold territory. The stochastic readings made a bullish crossover on August 6 and past crossovers have been good bullish signs for the stock.
In addition to the oversold levels on the RSI and stochastic readings, we see the following from Tickeron’s technical analysis overview.
The lower Bollinger Band was broken -- a price increase is expected as the stock heads toward the middle band, which indicates a buy or call consideration for traders. In 26 of 42 cases where AXP's price broke its lower Bollinger Band, its price rose further in the following month. The odds of a continued Uptrend are 62%.
The sentiment toward American Express was a little surprising, specifically the analysts’ ratings weren’t as bullish as I would have expected given the solid fundamentals for the company. There are 31 analysts following the stock currently and there are 14 “buy” ratings, 16 “hold” ratings, and one “sell” rating. The overall buy percentage is only 45.2% and that is well below average.
The short interest ratio is a little lower than average at this time with a current reading of 1.8. The average short interest ratio is in the 3.0 range so the bullish sentiment is a little greater in this category.
Something to remember about the sentiment indicators is that they are best used as contrarian indicators. Extreme bullish sentiment isn’t something you want on a stock as it means the expectations are really high. Conversely, extreme bearish sentiment can help a stock if the company is producing good earnings results. The sentiment toward American Express isn’t extremely bearish, but the analysts’ ratings are definitely skewed toward the bearish side.
Given the solid fundamentals, the oversold levels on the chart, and the bearishly skewed sentiment, look for American Express to bounce in the coming weeks.
Contributor
Harry Richardson — Algorithmic Trader & Strategy Developer Harry is an algorithmic trader specializing in impulse and breakout trading strategies across cryptocurrency and equity markets. With more than 10 years of experience in developing automated trading systems, he focuses on building structured algorithms designed to capture momentum while maintaining strict risk control. His approach combines quantitative analysis, real-market execution, and continuous performance monitoring. Vitalii prioritizes risk management, drawdown control, and strategy stability over short-term optimization, ensuring algorithms are adaptable to changing market conditions. He has developed and tested hundreds of automated strategies, working extensively with live trading environments, forward testing, and portfolio-level algorithm management. His work centers on transforming trading ideas into fully operational, scalable automated systems.
AXP's RSI Indicator ascends from oversold territory
The RSI Indicator for AXP moved out of oversold territory on September 02, 2026. This could be a sign that the stock is shifting from a downward trend to an upward trend. Traders may want to buy the stock or call options. The A.I.dvisor looked at 28 similar instances when the indicator left oversold territory. In of the 28 cases the stock moved higher. This puts the odds of a move higher at .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 8 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
The 50-day moving average for AXP moved above the 200-day moving average on August 12, 2026. This could be a long-term bullish signal for the stock as the stock shifts to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where AXP advanced for three days, in of 327 cases, the price rose further within the following month. The odds of a continued upward trend are .
AXP may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on August 17, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on AXP as a result. In of 74 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
AXP moved below its 50-day moving average on August 17, 2026 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for AXP crossed bearishly below the 50-day moving average on August 19, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In of 14 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where AXP declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for AXP entered a downward trend on September 09, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 76, placing this stock better than average.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. AXP’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (6.341) is normal, around the industry mean (4.214). P/E Ratio (19.527) is within average values for comparable stocks, (15.460). Projected Growth (PEG Ratio) (1.304) is also within normal values, averaging (1.700). Dividend Yield (0.011) settles around the average of (0.081) among similar stocks. P/S Ratio (2.909) is also within normal values, averaging (5.923).
Notable companies
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Advertisement
General Information
a financial conglomerate
Industry SavingsBanks
Advertisement