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American Express (AXP) Stock Moves -0.88%: What You Should Know

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American Express (AXP - Free Report) closed the most recent trading day at $145.01, moving -0.88% from the previous trading session. This change was narrower than the S&P 500's daily loss of 0.9%. At the same time, the Dow lost 0.5%, and the tech-heavy Nasdaq lost 0.26%.

Heading into today, shares of the credit card issuer and global payments company had lost 4.07% over the past month, lagging the Finance sector's loss of 3.22% and the S&P 500's loss of 2.66% in that time.

Investors will be hoping for strength from American Express as it approaches its next earnings release. On that day, American Express is projected to report earnings of $2.19 per share, which would represent year-over-year growth of 0.46%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $14.26 billion, up 17.38% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $9.96 per share and revenue of $52.94 billion. These totals would mark changes of -0.6% and +24.92%, 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. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Within the past 30 days, our consensus EPS projection has moved 0.41% higher. American Express is holding a Zacks Rank of #3 (Hold) right now.

Investors should also note American Express's current valuation metrics, including its Forward P/E ratio of 14.69. For comparison, its industry has an average Forward P/E of 9.78, which means American Express is trading at a premium to the group.

Meanwhile, AXP's PEG ratio is currently 1.24. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. AXP's industry had an average PEG ratio of 0.69 as of yesterday's close.

The Financial - Miscellaneous Services industry is part of the Finance sector. This group has a Zacks Industry Rank of 140, putting it in the bottom 45% 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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