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 travel stocks that will benefit from the end of Covid restrictions
From sea to brilliant sea, the green shoots of a reopening quickly turn into a forest of lush growth. It might seem like a bit of a stretch, but after two long years, it looks like 2022 will bring a return to travel that resembles pre-pandemic levels. And if you still think that’s hyperbole, consider this:
The Institute for Health Metrics and Evaluation at the University of Washington estimates that 73% of Americans are currently immune to the omicron variant of Covid-19. At this level, many experts believe that future surges will be less disruptive. And even Dr. Anthony Fauci thinks it’s time for Americans to move on.
And that’s why investors should start looking at travel stocks. To be fair, this is not an area where investors will find many undervalued stocks. In fact, many skeptics may say that these stocks have future growth built into them.
This is a theory that is about to be tested in a big way. That’s why we dug in and bring you seven stocks that seem to offer intriguing value when Americans are planning their travel plans.
Check out the “7 travel stocks that will benefit from the end of Covid restrictions”.