Back to top

Image: Bigstock

American Express (AXP) Stock Sinks As Market Gains: What You Should Know

Read MoreHide Full Article

American Express (AXP - Free Report) closed the most recent trading day at $149.90, moving -0.81% from the previous trading session. This change lagged the S&P 500's 0.02% gain on the day. At the same time, the Dow lost 0.2%, and the tech-heavy Nasdaq gained 0.22%.

Heading into today, shares of the credit card issuer and global payments company had lost 5.69% over the past month, lagging the Finance sector's loss of 1.61% and the S&P 500's loss of 2.86% in that time.

American Express will be looking to display strength as it nears its next earnings release, which is expected to be October 20, 2023. The company is expected to report EPS of $2.98, up 20.65% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $15.43 billion, up 13.81% from the year-ago period.

AXP's full-year Zacks Consensus Estimates are calling for earnings of $11.13 per share and revenue of $60.81 billion. These results would represent year-over-year changes of +12.99% and +15.04%, 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 such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, 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 0.06% lower within the past month. American Express is currently a Zacks Rank #3 (Hold).

Investors should also note American Express's current valuation metrics, including its Forward P/E ratio of 13.58. Its industry sports an average Forward P/E of 10.12, so we one might conclude that American Express is trading at a premium comparatively.

Also, we should mention that AXP has a PEG ratio of 0.95. 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 1.15 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 162, which puts it in the bottom 36% 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


American Express Company (AXP) - free report >>

Published in