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American Express (AXP) Outpaces Stock Market Gains: What You Should Know
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In the latest trading session, American Express (AXP - Free Report) closed at $156.30, marking a +0.61% move from the previous day. This change outpaced the S&P 500's 0.34% gain on the day. At the same time, the Dow added 0.1%, and the tech-heavy Nasdaq gained 0.02%.
Coming into today, shares of the credit card issuer and global payments company had lost 6.05% in the past month. In that same time, the Finance sector lost 6.7%, while the S&P 500 lost 7.95%.
American Express will be looking to display strength as it nears its next earnings release. On that day, American Express is projected to report earnings of $2.36 per share, which would represent year-over-year growth of 3.96%. Meanwhile, our latest consensus estimate is calling for revenue of $13.5 billion, up 23.53% from the prior-year quarter.
AXP's full-year Zacks Consensus Estimates are calling for earnings of $9.87 per share and revenue of $52.82 billion. These results would represent year-over-year changes of -1.5% and +24.63%, respectively.
Investors might also notice recent changes to analyst estimates for American Express. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.24% higher. American Express is currently a Zacks Rank #3 (Hold).
In terms of valuation, American Express is currently trading at a Forward P/E ratio of 15.75. Its industry sports an average Forward P/E of 10.5, so we one might conclude that American Express is trading at a premium comparatively.
It is also worth noting that AXP currently has a PEG ratio of 1.21. 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 was holding an average PEG ratio of 0.58 at yesterday's closing price.
The Financial - Miscellaneous Services industry is part of the Finance sector. This group has a Zacks Industry Rank of 147, putting it in the bottom 42% 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.
To follow AXP in the coming trading sessions, be sure to utilize Zacks.com.
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American Express (AXP) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, American Express (AXP - Free Report) closed at $156.30, marking a +0.61% move from the previous day. This change outpaced the S&P 500's 0.34% gain on the day. At the same time, the Dow added 0.1%, and the tech-heavy Nasdaq gained 0.02%.
Coming into today, shares of the credit card issuer and global payments company had lost 6.05% in the past month. In that same time, the Finance sector lost 6.7%, while the S&P 500 lost 7.95%.
American Express will be looking to display strength as it nears its next earnings release. On that day, American Express is projected to report earnings of $2.36 per share, which would represent year-over-year growth of 3.96%. Meanwhile, our latest consensus estimate is calling for revenue of $13.5 billion, up 23.53% from the prior-year quarter.
AXP's full-year Zacks Consensus Estimates are calling for earnings of $9.87 per share and revenue of $52.82 billion. These results would represent year-over-year changes of -1.5% and +24.63%, respectively.
Investors might also notice recent changes to analyst estimates for American Express. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.24% higher. American Express is currently a Zacks Rank #3 (Hold).
In terms of valuation, American Express is currently trading at a Forward P/E ratio of 15.75. Its industry sports an average Forward P/E of 10.5, so we one might conclude that American Express is trading at a premium comparatively.
It is also worth noting that AXP currently has a PEG ratio of 1.21. 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 was holding an average PEG ratio of 0.58 at yesterday's closing price.
The Financial - Miscellaneous Services industry is part of the Finance sector. This group has a Zacks Industry Rank of 147, putting it in the bottom 42% 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.
To follow AXP in the coming trading sessions, be sure to utilize Zacks.com.