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Why American Express (AXP) Dipped More Than Broader Market Today
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In the latest trading session, American Express (AXP - Free Report) closed at $186.77, marking a -1.29% move from the previous day. The stock trailed the S&P 500, which registered a daily loss of 0.15%. Meanwhile, the Dow experienced a drop of 0.42%, and the technology-dominated Nasdaq saw an increase of 0.09%.
The credit card issuer and global payments company's shares have seen an increase of 12.36% over the last month, surpassing the Finance sector's gain of 2.37% and the S&P 500's gain of 3.5%.
The investment community will be closely monitoring the performance of American Express in its forthcoming earnings report. The company is scheduled to release its earnings on January 26, 2024. The company is expected to report EPS of $2.63, up 27.05% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $16.01 billion, indicating a 12.94% growth compared to the corresponding quarter of the prior year.
Any recent changes to analyst estimates for American Express should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.08% higher. Currently, American Express is carrying a Zacks Rank of #2 (Buy).
In the context of valuation, American Express is at present trading with a Forward P/E ratio of 15.24. This denotes a premium relative to the industry's average Forward P/E of 10.17.
We can additionally observe that AXP currently boasts a PEG ratio of 1.06. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Financial - Miscellaneous Services industry currently had an average PEG ratio of 0.94 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 147, which puts it in the bottom 42% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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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Why American Express (AXP) Dipped More Than Broader Market Today
In the latest trading session, American Express (AXP - Free Report) closed at $186.77, marking a -1.29% move from the previous day. The stock trailed the S&P 500, which registered a daily loss of 0.15%. Meanwhile, the Dow experienced a drop of 0.42%, and the technology-dominated Nasdaq saw an increase of 0.09%.
The credit card issuer and global payments company's shares have seen an increase of 12.36% over the last month, surpassing the Finance sector's gain of 2.37% and the S&P 500's gain of 3.5%.
The investment community will be closely monitoring the performance of American Express in its forthcoming earnings report. The company is scheduled to release its earnings on January 26, 2024. The company is expected to report EPS of $2.63, up 27.05% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $16.01 billion, indicating a 12.94% growth compared to the corresponding quarter of the prior year.
Any recent changes to analyst estimates for American Express should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.08% higher. Currently, American Express is carrying a Zacks Rank of #2 (Buy).
In the context of valuation, American Express is at present trading with a Forward P/E ratio of 15.24. This denotes a premium relative to the industry's average Forward P/E of 10.17.
We can additionally observe that AXP currently boasts a PEG ratio of 1.06. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Financial - Miscellaneous Services industry currently had an average PEG ratio of 0.94 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 147, which puts it in the bottom 42% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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.