Hedgeye CEO Keith McCullough adding American Express (AXP) to the short side of Investing Ideas. Below is a brief note.
Nice job selling the Financials (XLF) when you should have...
I should have sent you this American Express (AXP) SELL signal at the same time, but I had to strap on the ole feed bag and have some lunch post RTA Live!
Here's a good summary excerpt from Financials analyst Josh Steiner's Financials Pro research product on reiterating the sell on AXP:
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Takeaway: We maintain our negative outlook based on the market's extrapolation of reflationary dynamics for AXP amid a current and persisting Quad 4. Recap: AXP reported 4Q21 EPS of $2.18 vs. expectations for $1.86, with the company beating estimates broadly across its top-line and posting a higher-than-expected reserve release flowing through the P&L as lower-than-expected provision expense. Domestic and international billed business came in at +33% y/y (+16% vs. '19) and +32% y/y (-1% vs. '19) versus expectations for +27.5% y/y and 24.2% y/y, respectively. In total, billed business meaningfully accelerated against 2019 levels from +4% in 3Q21 to +12% in 4Q21, driven by strength in goods and services spending, and led by domestic strength. |
Stay with the process,
KM
