In the latest trading session, American Express (AXP) closed at $117.51, marking a -1.24% move from the previous day. This change lagged the S&P 500's daily loss of 0.35%. At the same time, the Dow lost 0.41%, and the tech-heavy Nasdaq lost 0.07%.
Coming into today, shares of the credit card issuer and global payments company had gained 4.24% in the past month. In that same time, the Finance sector gained 3.64%, while the S&P 500 gained 3.21%.
Investors will be hoping for strength from AXP as it approaches its next earnings release, which is expected to be January 26, 2021. The company is expected to report EPS of $1.31, down 35.47% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $9.41 billion, down 17.18% from the year-ago period.
AXP's full-year Zacks Consensus Estimates are calling for earnings of $3.34 per share and revenue of $36.22 billion. These results would represent year-over-year changes of -59.27% and -16.85%, respectively.
Any recent changes to analyst estimates for AXP should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 1% lower within the past month. AXP is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, AXP currently has a Forward P/E ratio of 35.61. Its industry sports an average Forward P/E of 16.32, so we one might conclude that AXP is trading at a premium comparatively.
Meanwhile, AXP's PEG ratio is currently 7.48. 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 2.97 at yesterday's closing price.
The Financial - Miscellaneous Services industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 169, which puts it in the bottom 34% 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.
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