As inflation and recession worries have risen, investors have been cautious about betting on higher consumer spending. With the holiday season about to start, American Express’s most lucrative quarter is in jeopardy. Analysts and investors will be paying close attention to any references or remarks related to fourth-quarter performance. The company reports third-quarter results before markets open on Friday.
Analysts like, but do not love, the stock. Of 23 brokerages covering the firm, 11 have a Hold rating and another 10 have Buy or Strong Buy ratings. At a recent share price of around $146.00, the implied gain based on a median price target of $165.00 is about 13%. At the high price target of $201.00, the upside potential rises to 37.7%.
Third-quarter revenue is forecast to rise sequentially by about 1.4% to $13.58 billion. That would be a jump of about 24.2% year over year. Adjusted EPS are pegged at $2.42, down 6% sequentially but up 6.6% year over year. For the full 2022 fiscal year, analysts are looking for EPS of $9.84, down 1.8%, on revenue of $53.08 billion, up 25.2%.
The stock trades at about 14.8 times expected 2022 EPS, 13.0 times estimated 2023 earnings of $11.19 and 11.5 times estimated 2024 earnings of $12.64 per share. The stock’s 52-week trading range is $130.65 to $199.55, and American Express pays an annual dividend of $2.08 (yield of 1.47%). Total shareholder return for the past 12 months was negative 16.4%.
CSX
Railroad operator CSX Corp. (NYSE: CSX) has seen its share price drop by 17% over the past 12 months. Since reaching a year-to-date high in late March, CSX stock is down more than 24%. The railroad reports quarterly results after markets close on Thursday.
U.S. rail traffic rose 5.7% last year, but through October 8, traffic has dipped by about 2.7% year over year. Petroleum shipments are down 10% year over year, while motor vehicle shipments, which had dropped by nearly 10% in April, have increased by nearly 2% year over year. Intermodal (shipping containers) shipments are down 6.6% compared to 2021.
Analysts remain bullish on the stock, with 17 of 28 having a Buy or Strong Buy rating and 10 more rating the shares at Hold. At a share price of around $28.40, the upside potential to a median price target of $32.00 is about 12.7%. At a high price target of $41.00, the upside potential rises to 44.4%.
For the third quarter of fiscal 2022, analysts have forecast revenue at $3.75 billion, down 1.6% sequentially 14% higher year over year. Adjusted EPS are forecast at $0.50, down 2.6% sequentially and up by 16.3% year over year. For the full fiscal year, analysts forecast EPS of $1.87, up almost 20% year over year, and revenue of $14.71 billion, up 17.5%.
CSX stock trades at around 15.1 times expected 2022 EPS, 14.6 times estimated 2023 EPS of $1.92 and 13.6 times estimated 2024 earnings of $2.07 per share. The stock’s 52-week range is $25.80 to $38.63. The company pays an annual dividend of $0.37 (yield of 1.15%). Total shareholder return over the past year is negative 16.8%.
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