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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 $159.19, moving +0.55% from the previous trading session. The stock lagged the S&P 500's daily gain of 0.63%. At the same time, the Dow added 0.62%, and the tech-heavy Nasdaq gained 0.84%.
Prior to today's trading, shares of the credit card issuer and global payments company had lost 4.3% over the past month. This has lagged the Finance sector's loss of 3.73% and the S&P 500's loss of 3.37% in that time.
Investors will be hoping for strength from American Express as it approaches its next earnings release. The company is expected to report EPS of $2.99, up 21.05% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $15.44 billion, up 13.93% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $11.14 per share and revenue of $60.91 billion, which would represent changes of +13.1% and +15.22%, respectively, from the prior year.
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. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 0.26% lower. American Express is currently a Zacks Rank #3 (Hold).
Digging into valuation, American Express currently has a Forward P/E ratio of 14.22. This represents a premium compared to its industry's average Forward P/E of 10.73.
We can also see that AXP currently has a PEG ratio of 1. 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 1.05 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 168, which puts it in the bottom 34% 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.
You can find more information on all of these metrics, and much 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 $159.19, moving +0.55% from the previous trading session. The stock lagged the S&P 500's daily gain of 0.63%. At the same time, the Dow added 0.62%, and the tech-heavy Nasdaq gained 0.84%.
Prior to today's trading, shares of the credit card issuer and global payments company had lost 4.3% over the past month. This has lagged the Finance sector's loss of 3.73% and the S&P 500's loss of 3.37% in that time.
Investors will be hoping for strength from American Express as it approaches its next earnings release. The company is expected to report EPS of $2.99, up 21.05% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $15.44 billion, up 13.93% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $11.14 per share and revenue of $60.91 billion, which would represent changes of +13.1% and +15.22%, respectively, from the prior year.
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. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 0.26% lower. American Express is currently a Zacks Rank #3 (Hold).
Digging into valuation, American Express currently has a Forward P/E ratio of 14.22. This represents a premium compared to its industry's average Forward P/E of 10.73.
We can also see that AXP currently has a PEG ratio of 1. 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 1.05 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 168, which puts it in the bottom 34% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.