Nasdaq Stocks

Lean hogs fell lower on Wednesday, as contracts were anywhere from $1 to $2.05 in the red. USDA’s National Average Base Hog negotiated price was down a penny from the day prior in the Wednesday PM report at $92.02. The CME Lean Hog Index was down 26 cents on April...

Cotton futures are down 37 to 211 points across the board at the close. Crude Oil was feeling the pressure, below $80 per barrel on the day, $2.77 lower. The Fed showed no changes to rates after their 2 day meeting this afternoon, and stated they need to see inflation...

Amazon AMZN was the latest tech giant to impressively top Q1 expectations reporting after market hours on Tuesday and seeing its stock spike +2% in today’s trading session.

Radian (RDN) came out with quarterly earnings of $1.03 per share, beating the Zacks Consensus Estimate of $0.83 per share. This compares to earnings of $0.98 per share a year ago. These figures are adjusted for non-recurring items

UGI (UGI) came out with quarterly earnings of $1.97 per share, beating the Zacks Consensus Estimate of $1.65 per share. This compares to earnings of $1.68 per share a year ago. These figures are adjusted for non-recurring items.

Vector Group (VGR) came out with quarterly earnings of $0.24 per share, missing the Zacks Consensus Estimate of $0.25 per share. This compares to earnings of $0.22 per share a year ago. These figures are adjusted for non-recurring

ACRES Commercial (ACR) came out with quarterly earnings of $0.16 per share, missing the Zacks Consensus Estimate of $0.42 per share. This compares to earnings of $0.52 per share a year ago. These figures are adjusted for non-recur

Digi International (DGII) came out with quarterly earnings of $0.49 per share, beating the Zacks Consensus Estimate of $0.47 per share. This compares to earnings of $0.50 per share a year ago. These figures are adjusted for non-re

American Express ( NYSE:AXP ) is one of the few stocks that offers growth at a reasonable price (GARP). For instance, the company’s 19.1x P/E ratio isn’t overstretched, and financial growth is strong for the credit and debit card giant. While the company has been a GARP play for quite some time, its recent earnings report offers additional optimism. Therefore, I am bullish on this stock. Rising Revenue and Profit Margins American Express has consistently increased its revenue and profit margins. The company’s profit margin currently sits in the double digits, and that trend continued in the first quarter of 2024.  Revenue increased by 11% year-over-year, which was within expectations. However, the fintech firm shined with its net income. This metric grew by 34% year-over-year, which resulted in a 15.4% net profit margin.  The company started 2024 on a strong note and is attracting younger generations. Notably, more than 60% of the company’s new customers were Millennials or Gen Z consumers, and new card acquisitions came to 3.4 million in the quarter.  Sure, American Express doesn’t have profit margins as high as Visa ( NYSE:V ) or Mastercard ( NYSE:MA ). Visa is the leader, with profit margins regularly above 50%, while Mastercard has profit margins above 40%. Still, American Express has a much lower valuation and similar revenue growth. Plus, American Express’ net income growth comfortably exceeded its competitors’ growth rates. An Enticing Multi-Year Growth Plan Investors shouldn’t only look at one quarter. They should assess how a company is likely to perform over several years. A long-term approach can help investors find winners. Luckily, American Express has spelled out its long-term growth ambitions. Leadership anticipates 9% to 11% revenue growth and EPS growth in the mid-teens beyond 2026. The company achieved both of those benchmarks in the first quarter of 2024 and in previous quarters. For example, the company reported 15% year-over-year revenue growth and 14% year-over-year diluted EPS growth in full-year 2023. The fintech company’s ambitious growth plans are realistic and suggest that shares are fairly valued. Even after a 9% post-earnings pop, shares look attractive. Long-term gains have also been enticing for patient investors. AXP stock is up 26% year-to-date and has more than doubled over the past five years. AXP Has Impressive Dividend Growth American Express regularly rewards its long-term shareholders with buybacks and dividend distributions. It has the elements of a dividend growth stock that can make sense for retirement portfolios and growth-oriented funds. The stock has a 1.18% yield, which is decent on its own. However, it gets better. American Express has maintained an annualized dividend growth rate of 10.51% over the past decade, and the company recently hiked its quarterly dividend by 17%. The quarterly dividend currently stands at $0.70 per share. A Stable Business Model Investors who are worried about the economy slowing down may want to park some of their funds into stable picks like American Express. People trim their spending during economic slowdowns. Furthermore, fads will come and go, and some businesses will go under, but people will always use their credit and debit cards to buy goods and services. These cards are more convenient than paper cash and offer rewards. Consumers can borrow more money than what they currently have in their checking accounts. People will continue to use credit cards during any economic cycle. For American Express investors, that means more cash flow and long-term gains. Is AXP Stock a Buy, According to Analysts? Most analysts feel differently from this thesis. Based on AXP stock’s average price target of $234.20, analysts only expect 1.2% upside potential. Overall, the stock comes in as a Moderate Buy based on 10 Buys, seven Holds, and two Sells assigned in the past three months.  Analysts have been mixed after the company’s earnings report. BMO Capital believes the stock can fall to $175 per share, which represents 24% downside. However, Wells Fargo offered a Buy rating and a $265 price target. This price point suggests 14.5% upside for the stock. The Bottom Line on American Express Stock American Express looks like a promising investment opportunity for long-term investors due to its rising profit margins, revenue growth, and reasonable valuation.  The company’s multi-year growth projections should excite investors, and American Express is hitting its benchmarks of 9% to 11% year-over-year revenue growth and EPS growth in the mid-teens.  Investors who are worried about an economic slowdown may also want to consider this stock. While consumer spending will get hit during a slower economy, people will still use their American Express cards to make purchases.  Most of the giants in the credit and debit card industry offer solid value propositions for long-term investors. However, American Express has the best yield and net income growth among the leaders in the industry. The fintech stock has more than doubled over the past five years, and it looks like it’s due for more gains. Disclosure

At Holdings Channel, we have reviewed the latest batch of the 20 most recent 13F filings for the 03/31/2024 reporting period, and noticed that Taiwan Semiconductor Manufacturing Co., Ltd. (Symbol: TSM) was held by 11 of these funds. When hedge fund managers appear to be thinking

In trading on Wednesday, shares of ENI S.p.A. (Symbol: E) crossed below their 200 day moving average of $31.91, changing hands as low as $31.82 per share. ENI S.p.A. shares are currently trading down about 0.3% on the day. The chart below shows the one year performance of E sh

In trading on Wednesday, shares of Dollar General Corp (Symbol: DG) crossed below their 200 day moving average of $137.33, changing hands as low as $135.42 per share. Dollar General Corp shares are currently trading down about 2.5% on the day. The chart below shows the one yea

In trading on Wednesday, shares of Hillenbrand Inc (Symbol: HI) crossed below their 200 day moving average of $45.17, changing hands as low as $40.88 per share. Hillenbrand Inc shares are currently trading off about 13.9% on the day. The chart below shows the one year performa

In trading on Wednesday, shares of the IBTF ETF (Symbol: IBTF) crossed below their 200 day moving average of $23.15, changing hands as low as $23.08 per share. IBTF shares are currently trading off about 0.4% on the day. The chart below shows the one year performance of IBTF s

In trading on Wednesday, shares of the ProShares Bitcoin Strategy ETF (Symbol: BITO) entered into oversold territory, changing hands as low as $23.15 per share. We define oversold territory using the Relative Strength Index, or RSI, which is a technical analysis indicator used

In trading on Wednesday, shares of Global Industrial Company (Symbol: GIC) crossed below their 200 day moving average of $37.41, changing hands as low as $34.81 per share. Global Industrial Company shares are currently trading down about 9% on the day. The chart below shows th

Looking at the universe of stocks we cover at Dividend Channel, on 5/3/24, Sensient Technologies Corp. (Symbol: SXT) will trade ex-dividend, for its quarterly dividend of $0.41, payable on 6/3/24. As a percentage of SXT's recent stock price of $73.22, this dividend works out to

A look at the weighted underlying holdings of the iShares MSCI USA Value Factor ETF (Symbol: VLUE) shows an impressive 10.9% of holdings on a weighted basis have experienced insider buying within the past six months. Bristol Myers Squibb Co. (Symbol: BMY), which makes up 1.42%

Looking at the universe of stocks we cover at Dividend Channel, on 5/3/24, Brown & Brown Inc (Symbol: BRO), Pacific Premier Bancorp Inc (Symbol: PPBI), and OceanFirst Financial Corp (Symbol: OCFC) will all trade ex-dividend for their respective upcoming dividends. Brown &amp

In trading on Wednesday, shares of the Vanguard Ultra-Short Bond ETF (Symbol: VUSB) crossed below their 200 day moving average of $49.30, changing hands as low as $49.24 per share. Vanguard Ultra-Short Bond shares are currently trading trading flat on the day. The chart below