American Express Stock Rises on CNBC's Jim Cramer Praise

Strategic Insights -

American Express stock surged higher on Friday after prominent CNBC host Jim Cramer praised the company on his Mad Money show, listing it as one of his three favorite Dow components for 2011. Cramer predicted that the stock will rise 40% to $60 per share by the end of the year, driven by increased consumer confidence and international growth. This optimism was reflected in the stock's technical indicators, with the S&P giving American Express a positive 4-star buy ranking. As a result, investors may be considering hedged plays on the stock, such as a February out-of-the-money bull-put credit spread below the 39 range.

Key Takeaways:

  • American Express stock rose 2.07% to $44.30 on Friday, following a positive review from CNBC's Jim Cramer on Mad Money.
  • Cramer predicted that the stock will increase by 40% to $60 per share by the end of 2011, driven by increased consumer confidence and international growth.
  • The S&P gives American Express a positive 4-star buy ranking, indicating a bullish outlook for the stock.
  • Technical indicators are also favorable, suggesting a potential upward trend for the stock.
  • Alcoa and Intel were also listed as two of Cramer's favorite Dow components for 2011.
  • Investors may consider a hedged play on American Express, such as a February out-of-the-money bull-put credit spread below the 39 range.
  • The stock has ranged from a low of $36.60 to a high of $49.19 over the last 52 weeks.

Statistics:

  • American Express stock price: $44.30 (up 2.07% from previous close)
  • Predicted stock increase: 40% to $60 per share by end of 2011
  • S&P buy ranking for American Express: 4 stars (out of 5)
  • Technial indicators: Bullish outlook for the stock
  • Stock range over the last 52 weeks: $36.60 to $49.19
  • Cramer's three favorite Dow components: American Express, Intel, and Alcoa

Sources:

  • Fresh Brewed Media via COMTEX
  • CNBC's Mad Money with Jim Cramer
  • S&P ratings
  • Comtex SmarTrend Alert
  • Comtex News Network, Inc.