History says to buy the dip on this blue chip stock
American Express Company (NYSE:AXP) is down 2.3% to trade at $177.83 at last check. The blue-chip name has faced some volatility since its Feb. 16 high of $199.55, with at least three rallies since then below the $195 level, despite a valiant bounce off the $156 region. However, AXP is up 15.3% year-over-year, and there is reason to believe it could rise further after pulling back towards a historically bullish trend line.
Specifically, American Express stock recently traded within one standard deviation of its 160-day moving average. According to data from Schaeffer’s senior quantitative analyst, Rocky White, comparable moves have occurred seven times in the past three years, with AXP posting a positive one-month return 83% of the time and averaging 7.9% jump. A similar move from its current perch would bring equity back above the $191 mark.
A shift in sentiment among brokers could create additional tailwinds for American Express shares. Of the 17 companies covered, 10 call equity a lukewarm “wait”.
The title would also benefit from an outcome of the pessimism in the options stands. This is AXP Schaeffer’s put/call open interest ratio (SOIR) of 2.13, which is above 91% of last year’s readings, suggesting options traders short term have rarely been more biased by put options.
7 Retail Stocks That Can Still Hit the Register
Despite record inflation, supply chain disruptions and increased cost pressures from rising wages, the retail sector has been one of the best performers in 2022. Currently, many retailers were able to easily pass their costs on to consumers.
The question is how long can this last? Investors will get their first clue when the monthly retail advance report for March 2022 is released on April 14, 2022. However, if you’re looking to invest in the sector, it’s important to broaden your focus. Retail sales slowed sharply in February compared to January. However, this is a time when investors need to delve into the report. While some categories are struggling, other categories are outperforming the sector and may continue to do so.
This is the subject of this special presentation. We take a look at seven retail stocks that have performed strongly so far in 2022 and have strong prospects for the rest of the year.
See the “7 retail stocks that can still ring the register”.