In the latest close session, American Express (AXP) was up +1.9% at $379.80. This move outpaced the S&P 500's daily gain of 0.64%. Elsewhere, the Dow saw an upswing of 1.23%, while the tech-heavy Nasdaq appreciated by 0.69%.
The credit card issuer and global payments company's stock has climbed by 0.64% in the past month, falling short of the Finance sector's gain of 2.51% and outpacing the S&P 500's gain of 0.55%.
The investment community will be closely monitoring the performance of American Express in its forthcoming earnings report. The company is scheduled to release its earnings on January 30, 2026. On that day, American Express is projected to report earnings of $3.56 per share, which would represent year-over-year growth of 17.11%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $18.86 billion, up 9.78% from the year-ago period.
AXP's full-year Zacks Consensus Estimates are calling for earnings of $15.41 per share and revenue of $72.11 billion. These results would represent year-over-year changes of +15.43% and 0%, respectively.
Investors should also note any recent changes to analyst estimates for American Express. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.13% higher. At present, American Express boasts a Zacks Rank of #3 (Hold).
In terms of valuation, American Express is presently being traded at a Forward P/E ratio of 21.22. Its industry sports an average Forward P/E of 11.39, so one might conclude that American Express is trading at a premium comparatively.
It is also worth noting that AXP currently has a PEG ratio of 1.56. 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 industry currently had an average PEG ratio of 0.75 as of yesterday's close.
The Financial - Miscellaneous Services industry is part of the Finance sector. With its current Zacks Industry Rank of 158, this industry ranks in the bottom 36% of all industries, numbering over 250.
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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding 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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