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American Express (AXP) Outpaces Stock Market Gains: What You Should Know
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American Express (AXP - Free Report) closed at $175.14 in the latest trading session, marking a +0.86% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.69%. Elsewhere, the Dow gained 0.43%, while the tech-heavy Nasdaq lost 8.94%.
Prior to today's trading, shares of the credit card issuer and global payments company had gained 15.76% over the past month. This has outpaced the Finance sector's gain of 5.12% and the S&P 500's gain of 5.41% 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 $2.82, up 9.73% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $15.31 billion, up 14.29% from the year-ago period.
AXP's full-year Zacks Consensus Estimates are calling for earnings of $11.15 per share and revenue of $61.03 billion. These results would represent year-over-year changes of +13.2% and +15.46%, respectively.
Investors might also notice recent changes to analyst estimates for American Express. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 0.06% 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 15.57. This valuation marks a premium compared to its industry's average Forward P/E of 8.74.
Meanwhile, AXP's PEG ratio is currently 1.09. 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. Financial - Miscellaneous Services stocks are, on average, holding a PEG ratio of 1.09 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 192, putting it in the bottom 24% 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) Outpaces Stock Market Gains: What You Should Know
American Express (AXP - Free Report) closed at $175.14 in the latest trading session, marking a +0.86% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.69%. Elsewhere, the Dow gained 0.43%, while the tech-heavy Nasdaq lost 8.94%.
Prior to today's trading, shares of the credit card issuer and global payments company had gained 15.76% over the past month. This has outpaced the Finance sector's gain of 5.12% and the S&P 500's gain of 5.41% 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 $2.82, up 9.73% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $15.31 billion, up 14.29% from the year-ago period.
AXP's full-year Zacks Consensus Estimates are calling for earnings of $11.15 per share and revenue of $61.03 billion. These results would represent year-over-year changes of +13.2% and +15.46%, respectively.
Investors might also notice recent changes to analyst estimates for American Express. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 0.06% 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 15.57. This valuation marks a premium compared to its industry's average Forward P/E of 8.74.
Meanwhile, AXP's PEG ratio is currently 1.09. 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. Financial - Miscellaneous Services stocks are, on average, holding a PEG ratio of 1.09 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 192, putting it in the bottom 24% 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.