American Express (AXP) Moves 4.9% Higher: Will This Strength Last?
American Express (AXP) shares ended the last trading session 4.9% higher at $144.18. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 10.7% loss over the past four weeks.
Well-renowned investor, financial advisor and founder of GAMCO Investors, Mario Gabelli, picked up American Express as one of the five best stocks that an investor can buy in 2022. This might have boosted the share price of the stock. The jump follows a massive industry-wide panic selling, which made financial services stocks attractive again.
This credit card issuer and global payments company is expected to post quarterly earnings of $2.38 per share in its upcoming report, which represents a year-over-year change of -15%. Revenues are expected to be $12.4 billion, up 21% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For American Express, the consensus EPS estimate for the quarter has been revised marginally lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on AXP going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
American Express belongs to the Zacks Financial - Miscellaneous Services industry. Another stock from the same industry, Blackstone Inc. (BX), closed the last trading session 0.6% higher at $90.25. Over the past month, BX has returned -14.3%.
For Blackstone Inc. , the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.54. This represents a change of +87.8% from what the company reported a year ago. Blackstone Inc. currently has a Zacks Rank of #3 (Hold).
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