Hedgeye CEO Keith McCullough is adding American Express (AXP) to the short side of Investing Ideas. Below is a brief note.
Still looking for short ideas? I certainly hope so!
Financials remains my fav US Equity Sector Style short and American Express (AXP) has moved to the top of my list in terms of priorities (i.e. what stocks are approaching the top-end of my Risk Ranges within their respective Bearish @Hedgeye TREND duration signals).
Here's an excerpt from Financials analyst Josh Steiner on longer-term AXP concerns:
|
The larger uncertainties revolve around two fronts. First, how long will T&E activity remain depressed and what will the shape of the recovery ultimately look like? Second, will Covid-19 result in structural changes to business travel and entertainment? Given its exposure to T&E spending due to the travel-heavy appeal of its card products, the company's top-line is likely could be impaired long-beyond a basic resumption of activity. |
Sell the bounce,
KM