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American Express (AXP) Gains But Lags Market: What You Should Know
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American Express (AXP - Free Report) closed at $157.52 in the latest trading session, marking a +0.13% move from the prior day. This change lagged the S&P 500's 0.73% gain on the day. Meanwhile, the Dow gained 0.31%, and the Nasdaq, a tech-heavy index, added 0.16%.
Prior to today's trading, shares of the credit card issuer and global payments company had gained 2.06% over the past month. This has outpaced the Finance sector's loss of 1.41% and the S&P 500's gain of 0.09% in that time.
Wall Street will be looking for positivity from American Express as it approaches its next earnings report date. On that day, American Express is projected to report earnings of $2.15 per share, which would represent a year-over-year decline of 1.38%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $14.25 billion, up 17.31% from the year-ago period.
AXP's full-year Zacks Consensus Estimates are calling for earnings of $9.91 per share and revenue of $52.92 billion. These results would represent year-over-year changes of -1.1% and +24.87%, respectively.
It is also important to note the recent changes to analyst estimates for American Express. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Within the past 30 days, our consensus EPS projection has moved 0.01% higher. American Express is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, American Express is holding a Forward P/E ratio of 15.87. This represents a premium compared to its industry's average Forward P/E of 10.37.
Meanwhile, AXP's PEG ratio is currently 1.34. 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. AXP's industry had an average PEG ratio of 0.75 as of yesterday's close.
The Financial - Miscellaneous Services industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 138, which puts it in the bottom 46% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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) Gains But Lags Market: What You Should Know
American Express (AXP - Free Report) closed at $157.52 in the latest trading session, marking a +0.13% move from the prior day. This change lagged the S&P 500's 0.73% gain on the day. Meanwhile, the Dow gained 0.31%, and the Nasdaq, a tech-heavy index, added 0.16%.
Prior to today's trading, shares of the credit card issuer and global payments company had gained 2.06% over the past month. This has outpaced the Finance sector's loss of 1.41% and the S&P 500's gain of 0.09% in that time.
Wall Street will be looking for positivity from American Express as it approaches its next earnings report date. On that day, American Express is projected to report earnings of $2.15 per share, which would represent a year-over-year decline of 1.38%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $14.25 billion, up 17.31% from the year-ago period.
AXP's full-year Zacks Consensus Estimates are calling for earnings of $9.91 per share and revenue of $52.92 billion. These results would represent year-over-year changes of -1.1% and +24.87%, respectively.
It is also important to note the recent changes to analyst estimates for American Express. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Within the past 30 days, our consensus EPS projection has moved 0.01% higher. American Express is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, American Express is holding a Forward P/E ratio of 15.87. This represents a premium compared to its industry's average Forward P/E of 10.37.
Meanwhile, AXP's PEG ratio is currently 1.34. 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. AXP's industry had an average PEG ratio of 0.75 as of yesterday's close.
The Financial - Miscellaneous Services industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 138, which puts it in the bottom 46% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.