Positive Ratings Will Likely Continue for American Express
Of the 31 analysts currently analyzing American Express (AXP) stock, ten have given it a “buy” rating, and one has given it a “strong buy.”
American Express (AXP) has been using its strong balance sheet position to consistently declare dividends to its shareholders.
Analysts have given American Express (or Amex) (AXP) a price target of $84.08, a 4.3% rise from its current level.
American Express’s (AXP) Global Merchant Services segment is expected to see a marginal increase in its net income in 2Q17.
American Express’s (AXP) Global Commercial Services segment contributed 31.6% to the company’s total revenues.
American Express’s (AXP) International Consumer and Network Services segment reported a 16.0% rise YoY (year-over-year) in net income for 1Q17.
American Express (or Amex) (AXP) has entered into digital partnerships with Airbnb, Facebook (FB), and Uber in order to offset the revenue loss from Costco (COST).
Across its global issuing businesses, American Express (AXP) has issued 2.6 million new cards, of which 1.7 million were issued in the United States.
Market analysts expect American Express (or Amex) (AXP) to report EPS (earnings per share) of $1.43 in 2Q17, a rise of 6.7% from 1Q17.
MasterCard (MA) has a positive outlook on its recent acquisitions of VocaLink and NuData.
Though MasterCard (MA) is seeing rising valuations, most analysts that cover the stock give it a “buy” rating on the back of expected long-term growth.
In order to drive growth, MasterCard (MA) depends on global economic activity.
MasterCard (MA) has been paying dividends on its outstanding common stock for the past few quarters and is expected to continue this legacy.
MasterCard’s (MA) growth trajectory in the Middle East is expected to continue in the upcoming quarters.
MasterCard (MA) expects new payment flows and customer retention to rise in the upcoming quarters on the back of two major acquisitions, VocaLink and NuData.
MasterCard is expected to post EPS of $4.3 in 2017, a rise of 14.1% on a year-over-year basis.
Analysts have a positive outlook on Visa (V), as it reached an all-time high after its recent earnings results.
Analysts have a positive outlook on Visa (V) for the rest of fiscal 2017 mainly due to the company’s expansion plans in the Asia-Pacific region and its strong payment volume projections.
In fiscal 2017, Visa (V) expects to improve its performance, as the company has been working with government agencies and partners in India in order to expand its business.
Over the past five years, Visa (V) has spent $20 billion in various buyback programs.