We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
American Express (AXP) Outpaces Stock Market Gains: What You Should Know
Read MoreHide Full Article
American Express (AXP - Free Report) closed at $145.70 in the latest trading session, marking a +0.48% move from the prior day. This change outpaced the S&P 500's 0.1% gain on the day. At the same time, the Dow added 0.28%, and the tech-heavy Nasdaq lost 0.09%.
Heading into today, shares of the credit card issuer and global payments company had lost 5.1% over the past month, lagging the Finance sector's loss of 3.85% and the S&P 500's loss of 3.6% in that time.
American Express will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $2.19, up 0.46% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $14.26 billion, up 17.38% from the prior-year quarter.
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.
It is also important to note the 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.41% higher within the past month. American Express currently has a Zacks Rank of #3 (Hold).
Investors should also note American Express's current valuation metrics, including its Forward P/E ratio of 14.56. This represents a premium compared to its industry's average Forward P/E of 9.92.
It is also worth noting that AXP currently has a PEG ratio of 1.23. 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. The Financial - Miscellaneous Services was holding an average PEG ratio of 0.68 at yesterday's closing price.
The Financial - Miscellaneous Services industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 139, which puts it in the bottom 45% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
American Express (AXP) Outpaces Stock Market Gains: What You Should Know
American Express (AXP - Free Report) closed at $145.70 in the latest trading session, marking a +0.48% move from the prior day. This change outpaced the S&P 500's 0.1% gain on the day. At the same time, the Dow added 0.28%, and the tech-heavy Nasdaq lost 0.09%.
Heading into today, shares of the credit card issuer and global payments company had lost 5.1% over the past month, lagging the Finance sector's loss of 3.85% and the S&P 500's loss of 3.6% in that time.
American Express will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $2.19, up 0.46% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $14.26 billion, up 17.38% from the prior-year quarter.
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.
It is also important to note the 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.41% higher within the past month. American Express currently has a Zacks Rank of #3 (Hold).
Investors should also note American Express's current valuation metrics, including its Forward P/E ratio of 14.56. This represents a premium compared to its industry's average Forward P/E of 9.92.
It is also worth noting that AXP currently has a PEG ratio of 1.23. 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. The Financial - Miscellaneous Services was holding an average PEG ratio of 0.68 at yesterday's closing price.
The Financial - Miscellaneous Services industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 139, which puts it in the bottom 45% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.