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American Express (AXP) Stock Moves -0.11%: What You Should Know

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American Express (AXP - Free Report) closed the most recent trading day at $142.33, moving -0.11% from the previous trading session. This change was narrower than the S&P 500's 0.84% loss on the day. Meanwhile, the Dow lost 0.69%, and the Nasdaq, a tech-heavy index, lost 0.05%.

Prior to today's trading, shares of the credit card issuer and global payments company had lost 1.18% over the past month. This has lagged the Finance sector's loss of 0.44% and the S&P 500's gain of 2.02% in that time.

American Express will be looking to display strength as it nears its next earnings release, which is expected to be July 22, 2022. On that day, American Express is projected to report earnings of $2.36 per share, which would represent a year-over-year decline of 15.71%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $12.43 billion, up 21.39% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $9.76 per share and revenue of $50.55 billion. These totals would mark changes of -2.59% and +19.27%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for American Express. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.13% higher within the past month. American Express is currently sporting a Zacks Rank of #3 (Hold).

Investors should also note American Express's current valuation metrics, including its Forward P/E ratio of 14.6. Its industry sports an average Forward P/E of 9.84, so we one might conclude that American Express is trading at a premium comparatively.

We can also see that AXP currently has a PEG ratio of 1.09. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Financial - Miscellaneous Services industry currently had an average PEG ratio of 0.54 as of yesterday's close.

The Financial - Miscellaneous Services industry is part of the Finance sector. This group has a Zacks Industry Rank of 201, putting it in the bottom 21% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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