In the latest market close, American Express (AXP – Free Report) reached $264.38, with a -0.47% movement compared to the previous day. The stock’s performance was behind the S&P 500’s daily gain of 0.64%. Elsewhere, the Dow gained 0.85%, while the tech-heavy Nasdaq added 0.31%.
The credit card issuer and global payments company’s shares have seen a decrease of 14.6% over the last month, not keeping up with the Finance sector’s loss of 4.63% and the S&P 500’s loss of 7.69%.
Market participants will be closely following the financial results of American Express in its upcoming release. The company is forecasted to report an EPS of $3.47, showcasing a 4.2% upward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $17.02 billion, indicating a 7.69% increase compared to the same quarter of the previous year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $15.31 per share and revenue of $71.59 billion. These totals would mark changes of +14.68% and +8.55%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for American Express. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Over the past month, there’s been a 0.12% fall in the Zacks Consensus EPS estimate. American Express currently has a Zacks Rank of #3 (Hold).
From a valuation perspective, American Express is currently exchanging hands at a Forward P/E ratio of 17.35. This represents a premium compared to its industry’s average Forward P/E of 9.27.
It’s also important to note that AXP currently trades at a PEG ratio of 1.27. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company’s expected earnings growth rate into account. By the end of yesterday’s trading, the Financial – Miscellaneous Services industry had an average PEG ratio of 1.
The Financial – Miscellaneous Services industry is part of the Finance sector. This group has a Zacks Industry Rank of 39, putting it in the top 16% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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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