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Here's Why American Express (AXP) Gained But Lagged the Market Today
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In the latest market close, American Express (AXP - Free Report) reached $230.68, with a +0.04% movement compared to the previous day. The stock's change was less than the S&P 500's daily gain of 0.16%. Elsewhere, the Dow saw an upswing of 0.04%, while the tech-heavy Nasdaq appreciated by 0.49%.
Shares of the credit card issuer and global payments company have depreciated by 2.81% over the course of the past month, underperforming the Finance sector's loss of 0.22% and the S&P 500's gain of 3.22%.
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 July 19, 2024. The company is forecasted to report an EPS of $3.22, showcasing a 11.42% upward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $16.59 billion, indicating a 10.23% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates project earnings of $13 per share and a revenue of $66.44 billion, demonstrating changes of +15.97% and +9.79%, respectively, from the preceding year.
Investors should also note any recent changes to analyst estimates for American Express. These revisions help to show the ever-changing nature of 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 suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.05% lower. Right now, American Express possesses a Zacks Rank of #4 (Sell).
From a valuation perspective, American Express is currently exchanging hands at a Forward P/E ratio of 17.74. This denotes a premium relative to the industry's average Forward P/E of 10.91.
We can also see that AXP currently has a PEG ratio of 1.31. 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. The average PEG ratio for the Financial - Miscellaneous Services industry stood at 0.79 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 147, finds itself in the bottom 42% echelons of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Here's Why American Express (AXP) Gained But Lagged the Market Today
In the latest market close, American Express (AXP - Free Report) reached $230.68, with a +0.04% movement compared to the previous day. The stock's change was less than the S&P 500's daily gain of 0.16%. Elsewhere, the Dow saw an upswing of 0.04%, while the tech-heavy Nasdaq appreciated by 0.49%.
Shares of the credit card issuer and global payments company have depreciated by 2.81% over the course of the past month, underperforming the Finance sector's loss of 0.22% and the S&P 500's gain of 3.22%.
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 July 19, 2024. The company is forecasted to report an EPS of $3.22, showcasing a 11.42% upward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $16.59 billion, indicating a 10.23% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates project earnings of $13 per share and a revenue of $66.44 billion, demonstrating changes of +15.97% and +9.79%, respectively, from the preceding year.
Investors should also note any recent changes to analyst estimates for American Express. These revisions help to show the ever-changing nature of 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 suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.05% lower. Right now, American Express possesses a Zacks Rank of #4 (Sell).
From a valuation perspective, American Express is currently exchanging hands at a Forward P/E ratio of 17.74. This denotes a premium relative to the industry's average Forward P/E of 10.91.
We can also see that AXP currently has a PEG ratio of 1.31. 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. The average PEG ratio for the Financial - Miscellaneous Services industry stood at 0.79 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 147, finds itself in the bottom 42% echelons of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.