American Express Stock Still Has Room to Run

Group 1 - American Express Co (NYSE:AXP) beat earnings estimates but issued cautious guidance, disappointing investors [2] - Despite the pullback, shares are less than 10% from all-time highs and show strong momentum from an April low of $222 [2] - Post-earnings action occurred at the 50-day moving average, just above the $300 mark and recent highs from May and June [2] Group 2 - There was notable put activity prior to earnings, primarily for hedging purposes, which may limit post-earnings downside [3] - Analysts have room for upgrades, with 19 out of 29 analysts maintaining a "hold" or worse rating [3] - Short interest is at a three-year high, with total short interest up 25% since April, indicating a challenging environment for short sellers [4] Group 3 - The recommended call option has a leverage ratio of 10.7, which could double with a 9.5% increase in the underlying equity [4]