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American Express (AXP) Advances While Market Declines: Some Information for Investors
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In the latest trading session, American Express (AXP - Free Report) closed at $253.88, marking a +1.03% move from the previous day. This change outpaced the S&P 500's 0.32% loss on the day. On the other hand, the Dow registered a gain of 0.16%, and the technology-centric Nasdaq decreased by 0.85%.
Coming into today, shares of the credit card issuer and global payments company had gained 2.2% in the past month. In that same time, the Finance sector gained 2.55%, while the S&P 500 gained 1.52%.
The investment community will be closely monitoring the performance of American Express in its forthcoming earnings report. On that day, American Express is projected to report earnings of $3.25 per share, which would represent a year-over-year decline of 1.52%. Simultaneously, our latest consensus estimate expects the revenue to be $16.65 billion, showing an 8.28% escalation compared to the year-ago quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $13.06 per share and revenue of $65.99 billion. These totals would mark changes of +16.5% and +9.04%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for American Express. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 past month, the Zacks Consensus EPS estimate has shifted 0.09% upward. American Express is currently sporting a Zacks Rank of #3 (Hold).
Looking at valuation, American Express is presently trading at a Forward P/E ratio of 19.24. Its industry sports an average Forward P/E of 11.82, so one might conclude that American Express is trading at a premium comparatively.
It is also worth noting that AXP currently has a PEG ratio of 1.41. 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 0.98 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 60, which puts it in the top 24% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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American Express (AXP) Advances While Market Declines: Some Information for Investors
In the latest trading session, American Express (AXP - Free Report) closed at $253.88, marking a +1.03% move from the previous day. This change outpaced the S&P 500's 0.32% loss on the day. On the other hand, the Dow registered a gain of 0.16%, and the technology-centric Nasdaq decreased by 0.85%.
Coming into today, shares of the credit card issuer and global payments company had gained 2.2% in the past month. In that same time, the Finance sector gained 2.55%, while the S&P 500 gained 1.52%.
The investment community will be closely monitoring the performance of American Express in its forthcoming earnings report. On that day, American Express is projected to report earnings of $3.25 per share, which would represent a year-over-year decline of 1.52%. Simultaneously, our latest consensus estimate expects the revenue to be $16.65 billion, showing an 8.28% escalation compared to the year-ago quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $13.06 per share and revenue of $65.99 billion. These totals would mark changes of +16.5% and +9.04%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for American Express. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 past month, the Zacks Consensus EPS estimate has shifted 0.09% upward. American Express is currently sporting a Zacks Rank of #3 (Hold).
Looking at valuation, American Express is presently trading at a Forward P/E ratio of 19.24. Its industry sports an average Forward P/E of 11.82, so one might conclude that American Express is trading at a premium comparatively.
It is also worth noting that AXP currently has a PEG ratio of 1.41. 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 0.98 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 60, which puts it in the top 24% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.