American Express (AXP) closed the most recent trading day at $230.90, moving -1.44% from the previous trading session. The stock's change was more than the S&P 500's daily loss of 1.57%. Meanwhile, the Dow experienced a drop of 0.84%, and the technology-dominated Nasdaq saw a decrease of 2.15%.
The credit card issuer and global payments company's shares have seen a decrease of 10.35% over the last month, not keeping up with the Finance sector's loss of 10.12% and outstripping the S&P 500's loss of 12.16%.
The investment community will be paying close attention to the earnings performance of American Express in its upcoming release. The company is slated to reveal its earnings on April 17, 2025. The company is expected to report EPS of $3.47, up 4.2% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $17.02 billion, up 7.68% from the prior-year quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $15.28 per share and a revenue of $71.52 billion, signifying shifts of +14.46% and +8.45%, respectively, from the last year.
Investors should also pay attention to any latest changes in analyst estimates for American Express. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.24% downward. American Express is holding a Zacks Rank of #3 (Hold) right now.
With respect to valuation, American Express is currently being traded at a Forward P/E ratio of 15.33. This signifies a premium in comparison to the average Forward P/E of 8.6 for its industry.
It's also important to note that AXP currently trades at a PEG ratio of 1.12. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Financial - Miscellaneous Services was holding an average PEG ratio of 0.87 at yesterday's closing price.
The Financial - Miscellaneous Services industry is part of the Finance sector. This industry, currently bearing a Zacks Industry Rank of 55, finds itself in the top 23% echelons of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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American Express Company (AXP): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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