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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 the most recent trading day at $160.73, moving +0.58% from the previous trading session. This change lagged the S&P 500's 1.76% gain on the day. Meanwhile, the Dow gained 1.17%, and the Nasdaq, a tech-heavy index, added 3.03%.
Prior to today's trading, shares of the credit card issuer and global payments company had lost 11.55% over the past month. This has lagged the Finance sector's loss of 11.12% and the S&P 500's loss of 5.94% 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 $2.66, down 2.56% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $13.98 billion, up 19.16% from the year-ago period.
AXP's full-year Zacks Consensus Estimates are calling for earnings of $11.25 per share and revenue of $61.11 billion. These results would represent year-over-year changes of +14.21% and +15.59%, respectively.
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.
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. Over the past month, the Zacks Consensus EPS estimate has moved 0.02% higher. American Express is holding a Zacks Rank of #2 (Buy) right now.
In terms of valuation, American Express is currently trading at a Forward P/E ratio of 14.21. This represents a premium compared to its industry's average Forward P/E of 8.83.
Investors should also note that AXP has a PEG ratio of 0.98 right now. 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 0.75 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 154, putting it in the bottom 39% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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American Express (AXP) Gains But Lags Market: What You Should Know
American Express (AXP - Free Report) closed the most recent trading day at $160.73, moving +0.58% from the previous trading session. This change lagged the S&P 500's 1.76% gain on the day. Meanwhile, the Dow gained 1.17%, and the Nasdaq, a tech-heavy index, added 3.03%.
Prior to today's trading, shares of the credit card issuer and global payments company had lost 11.55% over the past month. This has lagged the Finance sector's loss of 11.12% and the S&P 500's loss of 5.94% 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 $2.66, down 2.56% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $13.98 billion, up 19.16% from the year-ago period.
AXP's full-year Zacks Consensus Estimates are calling for earnings of $11.25 per share and revenue of $61.11 billion. These results would represent year-over-year changes of +14.21% and +15.59%, respectively.
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.
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. Over the past month, the Zacks Consensus EPS estimate has moved 0.02% higher. American Express is holding a Zacks Rank of #2 (Buy) right now.
In terms of valuation, American Express is currently trading at a Forward P/E ratio of 14.21. This represents a premium compared to its industry's average Forward P/E of 8.83.
Investors should also note that AXP has a PEG ratio of 0.98 right now. 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 0.75 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 154, putting it in the bottom 39% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.