AXP (American Express): Strong Buy

1= Strong Buy 5=Strong Sell

Summary:

This is a stock that has been beaten down more than 47% this year but is still well off it’s 52-week lows.  This stock has a dividend yield of 1.78% and a PEG of 1.06.  The P/E of this stock is slightly above industry average but that is not a major concern for us at this point.  As many consumers begin turning to credit cards as money gets tighter we expect an influx of payments into AXP and other credit card stocks.  As inflation continues to rise, people will prefer using credit cards due to the volatility of the worthlessness of cash, particularly the dollar. For these reasons we recommend AXP as a buy.