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American Express (AXP) Stock Sinks As Market Gains: What You Should Know
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American Express (AXP - Free Report) closed at $174.33 in the latest trading session, marking a -0.18% move from the prior day. This move lagged the S&P 500's daily gain of 0.74%. Elsewhere, the Dow gained 0.25%, while the tech-heavy Nasdaq added 11.47%.
Heading into today, shares of the credit card issuer and global payments company had lost 0.29% over the past month, lagging the Finance sector's gain of 2.29% and the S&P 500's gain of 3.34% in that time.
Investors will be hoping for strength from American Express as it approaches its next earnings release, which is expected to be July 21, 2023. In that report, analysts expect American Express to post earnings of $2.80 per share. This would mark year-over-year growth of 8.95%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $15.38 billion, up 14.83% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $11.16 per share and revenue of $61.29 billion, which would represent changes of +13.3% and +15.95%, respectively, from the prior year.
Any recent changes to analyst estimates for American Express should also be noted by investors. 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. 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.
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 0.07% higher within the past month. American Express currently has a Zacks Rank of #2 (Buy).
Digging into valuation, American Express currently has a Forward P/E ratio of 15.66. This represents a premium compared to its industry's average Forward P/E of 9.95.
Also, we should mention that AXP has a PEG ratio of 1.09. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. AXP's industry had an average PEG ratio of 1.09 as of yesterday's close.
The Financial - Miscellaneous Services industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 160, which puts it in the bottom 37% 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.
To follow AXP in the coming trading sessions, be sure to utilize Zacks.com.
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American Express (AXP) Stock Sinks As Market Gains: What You Should Know
American Express (AXP - Free Report) closed at $174.33 in the latest trading session, marking a -0.18% move from the prior day. This move lagged the S&P 500's daily gain of 0.74%. Elsewhere, the Dow gained 0.25%, while the tech-heavy Nasdaq added 11.47%.
Heading into today, shares of the credit card issuer and global payments company had lost 0.29% over the past month, lagging the Finance sector's gain of 2.29% and the S&P 500's gain of 3.34% in that time.
Investors will be hoping for strength from American Express as it approaches its next earnings release, which is expected to be July 21, 2023. In that report, analysts expect American Express to post earnings of $2.80 per share. This would mark year-over-year growth of 8.95%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $15.38 billion, up 14.83% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $11.16 per share and revenue of $61.29 billion, which would represent changes of +13.3% and +15.95%, respectively, from the prior year.
Any recent changes to analyst estimates for American Express should also be noted by investors. 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. 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.
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 0.07% higher within the past month. American Express currently has a Zacks Rank of #2 (Buy).
Digging into valuation, American Express currently has a Forward P/E ratio of 15.66. This represents a premium compared to its industry's average Forward P/E of 9.95.
Also, we should mention that AXP has a PEG ratio of 1.09. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. AXP's industry had an average PEG ratio of 1.09 as of yesterday's close.
The Financial - Miscellaneous Services industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 160, which puts it in the bottom 37% 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.
To follow AXP in the coming trading sessions, be sure to utilize Zacks.com.