Home / Street Sector / American Express (NYSE:AXP)- Stocks Rallying on Profitability Valuation: First Horizon National (NYSE:FHN)

American Express (NYSE:AXP)- Stocks Rallying on Profitability Valuation: First Horizon National (NYSE:FHN)

American Express Company (NYSE:AXP) presented as an active mover, shares raised 0.34% to traded at $76.91 in most recent trading session. The firm has floated short ratio of 2.09%, hold to candle to sentiment indicator of Short Ratio, its stand at 4.02.

A day after analysts at Bank of America Merrill Lynch (BAML) raised their rating on the company to Buy from Neutral and assigned a 12-month price target of $90, analysts at Oppenheimer followed suit, forecasting potential premiums of 29%. On Tuesday, Oppenheimer analyst Ben Chittenden upgraded the credit card company to Outperform from Perform and issued a Street-high price target of $98. Notably, this new price target comes even as shares of American Express have already risen some 13% since the Nov. 8 presidential election. In fact, it’s for that reason that Chittenden, who cites improving corporate spending and Donald Trump’s tax reform plan, believes investors should own American Express.

Efficiency or profitability analysis gives an appropriate idea for investment decision; AXP attains returns on investment ratio of 4.00%, which suggests it’s viable on security that has lesser ROI. To strengthen this concept we can use profit margin, which is standing at positive 16.20%, and it is providing insight view about a variety of aspects of a firm’s financial performance. The operating profit margin and gross profit margin can be giving more focus view that is 25.40% and 74.30% respectively.

Turns back to returns ratios, returns on equity stands at 25.80%. Usually, financial analysts consider return on equity ratios in the 15-20% range as an attractive level of investment quality. Narrow down focus to firm performance, its weekly performance was 0.85% and monthly performance was 3.30%. The stock price of AXP is moving up from its 20 days moving average with 3.00% and isolated positively from 50 days moving average with 6.82%.

Following analysis criteria, First Horizon National Corporation (NYSE:FHN) attains noticeable attention, it are increasing 0.83% to traded at $20.58. FHN attains analyst recommendation of 2.80 on scale of 1-5 with week’s performance of 1.23%.

The firm has noticeable returns on equity ratio of 9.40%, which shows how much profit each dollar of ordinary stockholders’ equity generates. The returns on investment very popular metric among passive investors, it stands at 17.80%. To see the other side of depiction, profit margin of FHN stands at positive 27.30%; that indicates a firm actually every dollar of sales keeps in earnings. The 0.80% returns on assets presents notable condition of firm. Mostly ROA known as a comparative measure, it is best to compare it against a firm’s previous ROA numbers or the ROA of a same firm.

To find out the technical position of FHN, it holds price to book ratio of 2.03 that unearth high-growth companies selling at low-growth prices, but it requires appropriate measurement approach. It has forward price to earnings ratio of 18.56, and price to earnings ratio calculated as 22.62. The price to earnings growth ration calculated as 2.39. FHN is presenting price to cash flow of 1.67.

 

About Richard Avery

He is a capital projects manager and process design engineer at a large-cap company. He has renowned MBA degree. Before joining SWR, he was a freelance writer for renounce tech websites. He is currently studying for CFP exam. Interests: Tech stocks, Economic Markets, Blue-chips.

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