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American Express (AXP) Surpasses Market Returns: Some Facts Worth Knowing
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American Express (AXP - Free Report) closed the most recent trading day at $146.63, moving +1.09% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.81%. Elsewhere, the Dow saw an upswing of 0.39%, while the tech-heavy Nasdaq appreciated by 1.35%.
The credit card issuer and global payments company's shares have seen a decrease of 9.34% over the last month, not keeping up with the Finance sector's loss of 6.45% and the S&P 500's loss of 6.19%.
Investors will be eagerly watching for the performance of American Express in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on October 20, 2023. The company is predicted to post an EPS of $2.98, indicating a 20.65% growth compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $15.44 billion, up 13.86% from the prior-year quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $11.13 per share and a revenue of $60.82 billion, signifying shifts of +12.99% and +15.06%, respectively, from the last year.
Investors should also note any recent changes to analyst estimates for American Express. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.02% higher. American Express currently has a Zacks Rank of #3 (Hold).
Looking at valuation, American Express is presently trading at a Forward P/E ratio of 13.03. This expresses a premium compared to the average Forward P/E of 9.6 of its industry.
We can also see that AXP currently has a PEG ratio of 0.91. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Financial - Miscellaneous Services industry stood at 1.11 at the close of the market yesterday.
The Financial - Miscellaneous Services industry is part of the Finance sector. This industry, currently bearing a Zacks Industry Rank of 183, finds itself in the bottom 28% echelons 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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American Express (AXP) Surpasses Market Returns: Some Facts Worth Knowing
American Express (AXP - Free Report) closed the most recent trading day at $146.63, moving +1.09% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.81%. Elsewhere, the Dow saw an upswing of 0.39%, while the tech-heavy Nasdaq appreciated by 1.35%.
The credit card issuer and global payments company's shares have seen a decrease of 9.34% over the last month, not keeping up with the Finance sector's loss of 6.45% and the S&P 500's loss of 6.19%.
Investors will be eagerly watching for the performance of American Express in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on October 20, 2023. The company is predicted to post an EPS of $2.98, indicating a 20.65% growth compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $15.44 billion, up 13.86% from the prior-year quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $11.13 per share and a revenue of $60.82 billion, signifying shifts of +12.99% and +15.06%, respectively, from the last year.
Investors should also note any recent changes to analyst estimates for American Express. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.02% higher. American Express currently has a Zacks Rank of #3 (Hold).
Looking at valuation, American Express is presently trading at a Forward P/E ratio of 13.03. This expresses a premium compared to the average Forward P/E of 9.6 of its industry.
We can also see that AXP currently has a PEG ratio of 0.91. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Financial - Miscellaneous Services industry stood at 1.11 at the close of the market yesterday.
The Financial - Miscellaneous Services industry is part of the Finance sector. This industry, currently bearing a Zacks Industry Rank of 183, finds itself in the bottom 28% echelons 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.