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American Express (AXP) Dips More Than Broader Markets: What You Should Know
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In the latest trading session, American Express (AXP - Free Report) closed at $169.41, marking a -1.63% move from the previous day. This change lagged the S&P 500's daily loss of 0.47%. At the same time, the Dow lost 0.72%, and the tech-heavy Nasdaq lost 5.08%.
Prior to today's trading, shares of the credit card issuer and global payments company had gained 10.74% over the past month. This has outpaced the Finance sector's gain of 4.09% and the S&P 500's gain of 5.36% in that time.
American Express will be looking to display strength as it nears its next earnings release. In that report, analysts expect American Express to post earnings of $2.82 per share. This would mark year-over-year growth of 9.73%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $15.31 billion, up 14.29% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $11.15 per share and revenue of $61.03 billion, which would represent changes of +13.2% and +15.45%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for American Express. These recent revisions tend to reflect the evolving nature of short-term business trends. 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. 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.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. American Express is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, American Express is currently trading at a Forward P/E ratio of 15.44. This valuation marks a premium compared to its industry's average Forward P/E of 9.2.
Also, we should mention that AXP has a PEG ratio of 1.08. 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 1.08 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 190, which puts it in the bottom 25% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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American Express (AXP) Dips More Than Broader Markets: What You Should Know
In the latest trading session, American Express (AXP - Free Report) closed at $169.41, marking a -1.63% move from the previous day. This change lagged the S&P 500's daily loss of 0.47%. At the same time, the Dow lost 0.72%, and the tech-heavy Nasdaq lost 5.08%.
Prior to today's trading, shares of the credit card issuer and global payments company had gained 10.74% over the past month. This has outpaced the Finance sector's gain of 4.09% and the S&P 500's gain of 5.36% in that time.
American Express will be looking to display strength as it nears its next earnings release. In that report, analysts expect American Express to post earnings of $2.82 per share. This would mark year-over-year growth of 9.73%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $15.31 billion, up 14.29% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $11.15 per share and revenue of $61.03 billion, which would represent changes of +13.2% and +15.45%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for American Express. These recent revisions tend to reflect the evolving nature of short-term business trends. 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. 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.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. American Express is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, American Express is currently trading at a Forward P/E ratio of 15.44. This valuation marks a premium compared to its industry's average Forward P/E of 9.2.
Also, we should mention that AXP has a PEG ratio of 1.08. 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 1.08 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 190, which puts it in the bottom 25% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.