Citi Puts American Express on Negative Catalyst Watch for 90 Days

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The company offers an array of credit cards, charge cards, travel services, cash advances, business services, corporate cards, investment advice, and more. Recently, Citi has placed American Express ($NYSE:AXP) on a 90-day negative catalyst watch. This means that Citi will monitor American Express closely for any potential risks or concerns over the next three months. Citi’s decision to place American Express on a negative catalyst watch is based on the recent performance of the company’s stock and the potential for future volatility. American Express’ stock price has been in decline over the past few weeks, which has raised concerns about the long-term stability of the company.

Citi believes that by placing American Express on a 90-day watch, they can closely monitor developments and trends related to American Express and make sure there are no further issues. This watch means that Citi will be watching for any potential risks or issues with American Express and taking steps to address them if necessary. This could potentially lead to improved performance of the company’s stock and more stability for investors.

Stock Price

On Thursday, American Express‘s stock opened at $171.4 and closed at $173.8, down 0.4% from its last closing price of 174.5. This means that Citi analysts are now expecting American Express’s stock to underperform the market in the short term, or fall down relative to other stocks in the industry. Citi analysts have advised investors to be more cautious with American Express stock over the next 90 days, as there is an increased risk of a decline in share prices. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for American Express. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for American Express. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for American Express. More…

Key Ratios Snapshot

Some of the financial key ratios for American Express are shown below. More…

Analysis

At GoodWhale, we analyzed the wellbeing of American Express and found that the company has been classified as a ‘cheetah’, a type of company with high revenue or earnings growth but lower stability due to its lower profitability. This type of company is likely to be attractive to investors looking for higher returns but who also understand the risks associated with such investments. American Express’ health score was 6/10 with regards to its cashflows and debt. This suggests that the company will be able to sustain future operations in times of crisis. The company scored strongly in dividends, moderately in growth and weakly in assets and profitability. Thus, investors who are comfortable with taking on the extra risk of investing in a cheetah should consider American Express as an option. More…

Peers

Amex is known for its credit card, charge card, and traveler’s cheque businesses. The company’s competitors in the credit card space include Discover Financial Services, Synchrony Financial, and Visa Inc.

– Discover Financial Services ($NYSE:DFS)

Discover Financial Services has a market cap of 28.54B as of 2022, a Return on Equity of 26.11%. The company specializes in credit cards, personal loans, and student loans. It also offers banking products such as checking and savings accounts. Discover is one of the largest credit card issuers in the United States. It has more than 50 million cardholders and operates in more than 185 countries. The company was founded in 1986 and is headquartered in Riverwoods, Illinois.

– Synchrony Financial ($NYSE:SYF)

Synchrony Financial is a consumer financial services company with a market cap of 16.02B as of 2022. The company offers a variety of financial services, including credit cards, loans, and savings products. Synchrony Financial has a return on equity of 20.2%. The company’s products are available through a variety of channels, including online, mobile, and retail.

– Visa Inc ($NYSE:V)

Visa Inc is a multinational financial services corporation headquartered in Foster City, California, United States. The company facilitates electronic funds transfers throughout the world, most commonly through Visa-branded credit cards and debit cards. Visa does not issue cards, extend credit, or set rates and fees for consumers. Rather, Visa provides financial institutions with Visa-branded products and services that they then use to offer credit, debit, prepaid, and cash-access products to their customers.

In terms of market cap, as of 2022, Visa Inc has a market cap of 436.4B. In terms of ROE, the company has a ROE of 32.85%. As a brief introduction, the company is a multinational financial services corporation that facilitates electronic funds transfers throughout the world.

Summary

American Express (Amex) has recently been put on a 90-day negative catalyst watch by Citi. This means that Citi is anticipating a potentially negative event which could have a significant impact on the company’s stock price. Investors are advised to closely monitor the situation and consider how such an event might affect their investments.

Amex’s financial performance and stock price should be assessed carefully in order to understand the potential impact of the upcoming event. Investors should also take into account any relevant industry developments, competitor activity, and macroeconomic conditions when evaluating their investments in Amex.