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American Express (AXP) Stock Dips While Market Gains: Key Facts

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In the latest trading session, American Express (AXP - Free Report) closed at $232.44, marking a -0.1% move from the previous day. The stock's performance was behind the S&P 500's daily gain of 0.26%. Elsewhere, the Dow saw an upswing of 0.18%, while the tech-heavy Nasdaq appreciated by 0.35%.

The the stock of credit card issuer and global payments company has fallen by 3.97% in the past month, lagging the Finance sector's gain of 0.75% and the S&P 500's gain of 3.25%.

The upcoming earnings release of American Express will be of great interest to investors. The company is expected to report EPS of $3.23, up 11.76% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $16.6 billion, indicating a 10.25% upward movement from the same quarter last year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $13.01 per share and revenue of $66.44 billion, which would represent changes of +16.06% and +9.8%, respectively, from the prior year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for American Express. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.

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. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. 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 17.89. For comparison, its industry has an average Forward P/E of 10.88, which means American Express is trading at a premium to the group.

Also, we should mention that AXP has a PEG ratio of 1.32. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Financial - Miscellaneous Services industry was having an average PEG ratio of 0.75.

The Financial - Miscellaneous Services industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 92, which puts it in the top 37% 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.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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