American Express Stock Could Have Room To Run

It appears to be an opportune time to take a long position on blue chip American Express (NYSE:AXP). The company just topped earnings expectations and raised its full-year outlook, and although its long-time CEO is stepping down, he'll be replaced by a 30-year veteran of the firm. On top of these promising fundamental developments, the stock's technical prospects also appear bullish.

For instance, AXP shares sport a year-over-year lead of over 38%, and just touched a 52-week high. In fact, the equity is now closing in on its all-time highs from 2014. Meanwhile, the 20-day moving average has provided solid support for months, and sits just above the round $90 mark.

Despite the promising technical setup, analysts have failed to embrace the outperforming stock. Currently, 10 of 16 brokerage firms have "hold" or "strong sell" recommendations. As such, a round of upgrades could be on the horizon.

Meanwhile, AXP's Schaeffer's Volatility Index (SVI) of 14% is just 10 percentage points from an annual low, meaning volatility expectations for near-term options are relatively muted at the moment.

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