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American Express (AXP) Gains But Lags Market: What You Should Know
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American Express (AXP - Free Report) closed the most recent trading day at $86.58, moving +0.83% from the previous trading session. This move lagged the S&P 500's daily gain of 6%. Elsewhere, the Dow gained 5.2%, while the tech-heavy Nasdaq added 6.23%.
Heading into today, shares of the credit card issuer and global payments company had lost 36.8% over the past month, lagging the Finance sector's loss of 33.35% and the S&P 500's loss of 29.18% in that time.
AXP will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $2.18, up 8.46% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $11.24 billion, up 8.41% from the year-ago period.
AXP's full-year Zacks Consensus Estimates are calling for earnings of $8.93 per share and revenue of $46.92 billion. These results would represent year-over-year changes of +8.9% and +7.73%, respectively.
Investors should also note any recent changes to analyst estimates for AXP. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.29% lower. AXP currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, AXP is holding a Forward P/E ratio of 9.62. This valuation marks a premium compared to its industry's average Forward P/E of 9.34.
We can also see that AXP currently has a PEG ratio of 0.95. 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 was holding an average PEG ratio of 0.99 at yesterday's closing price.
The Financial - Miscellaneous Services industry is part of the Finance sector. This group has a Zacks Industry Rank of 84, putting it in the top 33% of all 250+ industries.
The Zacks Industry Rank includes is listed in order 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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American Express (AXP) Gains But Lags Market: What You Should Know
American Express (AXP - Free Report) closed the most recent trading day at $86.58, moving +0.83% from the previous trading session. This move lagged the S&P 500's daily gain of 6%. Elsewhere, the Dow gained 5.2%, while the tech-heavy Nasdaq added 6.23%.
Heading into today, shares of the credit card issuer and global payments company had lost 36.8% over the past month, lagging the Finance sector's loss of 33.35% and the S&P 500's loss of 29.18% in that time.
AXP will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $2.18, up 8.46% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $11.24 billion, up 8.41% from the year-ago period.
AXP's full-year Zacks Consensus Estimates are calling for earnings of $8.93 per share and revenue of $46.92 billion. These results would represent year-over-year changes of +8.9% and +7.73%, respectively.
Investors should also note any recent changes to analyst estimates for AXP. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.29% lower. AXP currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, AXP is holding a Forward P/E ratio of 9.62. This valuation marks a premium compared to its industry's average Forward P/E of 9.34.
We can also see that AXP currently has a PEG ratio of 0.95. 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 was holding an average PEG ratio of 0.99 at yesterday's closing price.
The Financial - Miscellaneous Services industry is part of the Finance sector. This group has a Zacks Industry Rank of 84, putting it in the top 33% of all 250+ industries.
The Zacks Industry Rank includes is listed in order 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.
You can find more information on all of these metrics, and much more, on Zacks.com.