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American Express (AXP) Ascends While Market Falls: Some Facts to Note

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American Express (AXP - Free Report) closed the most recent trading day at $302.11, moving +1.82% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.3%. Elsewhere, the Dow lost 0.35%, while the tech-heavy Nasdaq lost 0.25%.

The the stock of credit card issuer and global payments company has risen by 1.28% in the past month, leading the Finance sector's gain of 0.93% and the S&P 500's gain of 1.09%.

The investment community will be closely monitoring the performance of American Express in its forthcoming earnings report. The company is predicted to post an EPS of $3.01, indicating a 14.89% growth compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $17.19 billion, indicating an 8.8% upward movement from the same quarter last year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $13.39 per share and a revenue of $65.96 billion, representing changes of +19.45% and +9.01%, respectively, from the prior year.

Investors should also take note of any recent adjustments to analyst estimates for American Express. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. Within the past 30 days, our consensus EPS projection has moved 0.03% lower. American Express presently features a Zacks Rank of #3 (Hold).

Digging into valuation, American Express currently has a Forward P/E ratio of 22.15. This denotes a premium relative to the industry's average Forward P/E of 12.58.

We can additionally observe that AXP currently boasts a PEG ratio of 1.7. 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 1.1.

The Financial - Miscellaneous Services industry is part of the Finance sector. At present, this industry carries a Zacks Industry Rank of 60, placing it within the top 24% of over 250 industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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