American Express (AXP) Outperforms Broader Market: What You Need to Know
In the latest trading session, American Express (AXP) closed at $219.42, marking a +0.64% move from the previous day. The stock's change was more than the S&P 500's daily gain of 0.52%. Meanwhile, the Dow experienced a rise of 0.12%, and the technology-dominated Nasdaq saw an increase of 0.9%.
The credit card issuer and global payments company's stock has climbed by 8.61% in the past month, exceeding the Finance sector's gain of 2.95% and the S&P 500's gain of 3.85%.
The upcoming earnings release of American Express will be of great interest to investors. The company is forecasted to report an EPS of $3, showcasing a 25% upward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $15.74 billion, indicating a 10.18% upward movement from the same quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $12.80 per share and revenue of $66.23 billion. These totals would mark changes of +14.18% and +9.44%, respectively, from last year.
Any recent changes to analyst estimates for American Express should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.02% higher within the past month. American Express currently has a Zacks Rank of #2 (Buy).
Digging into valuation, American Express currently has a Forward P/E ratio of 17.03. Its industry sports an average Forward P/E of 11.37, so one might conclude that American Express is trading at a premium comparatively.
One should further note that AXP currently holds a PEG ratio of 1.23. 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 average PEG ratio for the Financial - Miscellaneous Services industry stood at 0.96 at the close of the market yesterday.
The Financial - Miscellaneous Services industry is part of the Finance sector. At present, this industry carries a Zacks Industry Rank of 153, placing it within the bottom 40% of over 250 industries.
The Zacks Industry Rank gauges the strength of our 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.
To follow AXP in the coming trading sessions, be sure to utilize Zacks.com.
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American Express Company (AXP) : Free Stock Analysis Report
