American Express (AXP – Free Report) closed the latest trading day at $297.33, indicating a -1.24% change from the previous session’s end. This change lagged the S&P 500’s daily loss of 1.07%. At the same time, the Dow lost 0.97%, and the tech-heavy Nasdaq lost 1.19%.
The the stock of credit card issuer and global payments company has fallen by 1.19% in the past month, leading the Finance sector’s loss of 4.94% and undershooting the S&P 500’s loss of 0.36%.
The investment community will be closely monitoring the performance of American Express in its forthcoming earnings report. The company is scheduled to release its earnings on January 24, 2025. The company’s earnings per share (EPS) are projected to be $3.02, reflecting a 15.27% increase from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $17.19 billion, up 8.82% from the prior-year quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $13.41 per share and revenue of $65.97 billion. These totals would mark changes of +19.63% and +9.01%, respectively, from last year.
Any recent changes to analyst estimates for American Express should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.1% upward. At present, American Express boasts a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that American Express has a Forward P/E ratio of 22.45 right now. Its industry sports an average Forward P/E of 12.22, so one might conclude that American Express is trading at a premium comparatively.
Meanwhile, AXP’s PEG ratio is currently 1.72. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock’s expected earnings growth rate. The Financial – Miscellaneous Services was holding an average PEG ratio of 1.01 at yesterday’s closing price.
The Financial – Miscellaneous Services industry is part of the Finance sector. Currently, this industry holds a Zacks Industry Rank of 61, positioning it in the top 25% of all 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.
To follow AXP in the coming trading sessions, be sure to utilize Zacks.com.
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