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American Express (AXP) Rises Yet Lags Behind Market: Some Facts Worth Knowing

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American Express (AXP - Free Report) closed the latest trading day at $271.20, indicating a +0.05% change from the previous session's end. This move lagged the S&P 500's daily gain of 0.42%. Meanwhile, the Dow experienced a rise of 0.04%, and the technology-dominated Nasdaq saw an increase of 0.38%.

Shares of the credit card issuer and global payments company witnessed a gain of 4.8% over the previous month, beating the performance of the Finance sector with its gain of 1.23% and the S&P 500's gain of 2.06%.

The investment community will be paying close attention to the earnings performance of American Express in its upcoming release. The company is slated to reveal its earnings on October 18, 2024. On that day, American Express is projected to report earnings of $3.26 per share, which would represent a year-over-year decline of 1.21%. At the same time, our most recent consensus estimate is projecting a revenue of $16.66 billion, reflecting an 8.28% rise from the equivalent quarter last year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $13.13 per share and revenue of $65.99 billion. These totals would mark changes of +17.13% and +9.04%, respectively, from last year.

It's also important for investors to be aware of any recent modifications to analyst estimates for American Express. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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 last 30 days, the Zacks Consensus EPS estimate has moved 0.04% higher. At present, American Express boasts a Zacks Rank of #2 (Buy).

Looking at its valuation, American Express is holding a Forward P/E ratio of 20.65. This signifies a premium in comparison to the average Forward P/E of 11.61 for its industry.

It's also important to note that AXP currently trades at a PEG ratio of 1.5. 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 had an average PEG ratio of 1.17 as trading concluded yesterday.

The Financial - Miscellaneous Services industry is part of the Finance sector. This group has a Zacks Industry Rank of 44, putting it in the top 18% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within 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 follow all of these stock-moving metrics, and many more, on Zacks.com.


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