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American Express (AXP) Beats Stock Market Upswing: What Investors Need to Know

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American Express (AXP - Free Report) closed the most recent trading day at $152.79, moving +1.12% from the previous trading session. The stock outpaced the S&P 500's daily gain of 1.06%. Elsewhere, the Dow gained 0.93%, while the tech-heavy Nasdaq added 1.2%.

The credit card issuer and global payments company's stock has dropped by 7.73% in the past month, falling short of the Finance sector's loss of 4.1% and the S&P 500's loss of 3%.

Market participants will be closely following the financial results of American Express in its upcoming release. The company plans to announce its earnings on October 20, 2023. The company is predicted to post an EPS of $2.96, indicating a 19.84% growth compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $15.42 billion, reflecting a 13.71% rise from the equivalent quarter last year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $11.13 per share and a revenue of $60.8 billion, signifying shifts of +12.99% and +15.02%, respectively, from the last year.

It is also important to note the recent changes to analyst estimates for American Express. Recent revisions tend to reflect the latest near-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 reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been a 0.03% fall in the Zacks Consensus EPS estimate. American Express presently features a Zacks Rank of #3 (Hold).

In the context of valuation, American Express is at present trading with a Forward P/E ratio of 13.58. This signifies a premium in comparison to the average Forward P/E of 9.38 for its industry.

We can additionally observe that AXP currently boasts a PEG ratio of 0.96. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Financial - Miscellaneous Services was holding an average PEG ratio of 1.13 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 191, which puts it in the bottom 25% of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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