American Express (AXP) Stock Drops Despite Market Gains: Important Facts to Note
The latest trading session saw American Express (AXP) ending at $227.69, denoting a -0.03% adjustment from its last day's close. The stock's change was less than the S&P 500's daily gain of 0.11%. Meanwhile, the Dow gained 0.12%, and the Nasdaq, a tech-heavy index, lost 0.12%.
Prior to today's trading, shares of the credit card issuer and global payments company had gained 4.46% over the past month. This has outpaced the Finance sector's gain of 4.21% and the S&P 500's gain of 3.55% in that time.
Analysts and investors alike will be keeping a close eye on the performance of American Express in its upcoming earnings disclosure. The company's earnings report is set to go public on April 19, 2024. On that day, American Express is projected to report earnings of $3.01 per share, which would represent year-over-year growth of 25.42%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $15.75 billion, up 10.31% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $12.83 per share and revenue of $66.21 billion. These totals would mark changes of +14.45% and +9.4%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for American Express. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Within the past 30 days, our consensus EPS projection has moved 0.02% higher. American Express is currently sporting a Zacks Rank of #3 (Hold).
In the context of valuation, American Express is at present trading with a Forward P/E ratio of 17.75. This indicates a premium in contrast to its industry's Forward P/E of 11.26.
One should further note that AXP currently holds a PEG ratio of 1.28. 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. Financial - Miscellaneous Services stocks are, on average, holding a PEG ratio of 1 based on yesterday's closing prices.
The Financial - Miscellaneous Services industry is part of the Finance sector. This industry, currently bearing a Zacks Industry Rank of 91, finds itself in the top 37% echelons 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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American Express Company (AXP) : Free Stock Analysis Report
