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American Express (AXP) Dips More Than Broader Markets: What You Should Know
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American Express (AXP - Free Report) closed at $153.75 in the latest trading session, marking a -1.29% move from the prior day. This move lagged the S&P 500's daily loss of 0.2%. Elsewhere, the Dow lost 1.14%, while the tech-heavy Nasdaq added 1.39%.
Heading into today, shares of the credit card issuer and global payments company had gained 7.41% over the past month, lagging the Finance sector's gain of 7.8% and outpacing the S&P 500's gain of 4.01% in that time.
Wall Street will be looking for positivity from American Express as it approaches its next earnings report date. This is expected to be January 27, 2023. The company is expected to report EPS of $2.18, unchanged from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $14.25 billion, up 17.3% from the prior-year quarter.
It is also important to note the recent changes to analyst estimates for American Express. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Within the past 30 days, our consensus EPS projection has moved 2.06% lower. American Express is holding a Zacks Rank of #4 (Sell) right now.
Looking at its valuation, American Express is holding a Forward P/E ratio of 14.67. Its industry sports an average Forward P/E of 9.26, so we one might conclude that American Express is trading at a premium comparatively.
Meanwhile, AXP's PEG ratio is currently 1.24. 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. Financial - Miscellaneous Services stocks are, on average, holding a PEG ratio of 0.72 based on yesterday's closing prices.
The Financial - Miscellaneous Services industry is part of the Finance sector. This group has a Zacks Industry Rank of 139, 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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American Express (AXP) Dips More Than Broader Markets: What You Should Know
American Express (AXP - Free Report) closed at $153.75 in the latest trading session, marking a -1.29% move from the prior day. This move lagged the S&P 500's daily loss of 0.2%. Elsewhere, the Dow lost 1.14%, while the tech-heavy Nasdaq added 1.39%.
Heading into today, shares of the credit card issuer and global payments company had gained 7.41% over the past month, lagging the Finance sector's gain of 7.8% and outpacing the S&P 500's gain of 4.01% in that time.
Wall Street will be looking for positivity from American Express as it approaches its next earnings report date. This is expected to be January 27, 2023. The company is expected to report EPS of $2.18, unchanged from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $14.25 billion, up 17.3% from the prior-year quarter.
It is also important to note the recent changes to analyst estimates for American Express. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Within the past 30 days, our consensus EPS projection has moved 2.06% lower. American Express is holding a Zacks Rank of #4 (Sell) right now.
Looking at its valuation, American Express is holding a Forward P/E ratio of 14.67. Its industry sports an average Forward P/E of 9.26, so we one might conclude that American Express is trading at a premium comparatively.
Meanwhile, AXP's PEG ratio is currently 1.24. 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. Financial - Miscellaneous Services stocks are, on average, holding a PEG ratio of 0.72 based on yesterday's closing prices.
The Financial - Miscellaneous Services industry is part of the Finance sector. This group has a Zacks Industry Rank of 139, 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.