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American Express is trading at $91.84, and the stock is up 5% since its first-quarter earnings for 2014 in mid-April were released. Even though its revenue failed to meet estimates, traders reacted well to the better-than-expected EPS of $1.33.
US consumer confidence has been positive over the past few months; however, American Express has been under pressure since Visa revealed an 11% increase in quarterly profits, but lowered its full-year forecast. Visa cited a drop in transactions between Russia and Ukraine with the eurozone as the reason for cutting its outlook.
Year-to-date, American Express is up 1%, the S&P 500 is up 7% and Visa is down 3.8%. Since traders’ expectations have been lowered by Visa’s update, it could create a buying opportunity for American Express.
The stock is receiving support at $89.41, and if the results are positive the company could target $95.