American Express (AXP) closed the latest trading day at $293.36, indicating a -0.14% change from the previous session's end. This move was narrower than the S&P 500's daily loss of 0.56%. Elsewhere, the Dow saw a downswing of 0.58%, while the tech-heavy Nasdaq depreciated by 0.51%.
Prior to today's trading, shares of the credit card issuer and global payments company had gained 10.01% over the past month. This has outpaced the Finance sector's gain of 5.39% and the S&P 500's gain of 7.37% 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 is predicted to post an EPS of $3.84, indicating a 10.03% growth compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $17.69 billion, reflecting an 8.34% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $15.18 per share and a revenue of $71.27 billion, demonstrating changes of +13.71% and +8.06%, respectively, from the preceding year.
It's also important for investors to be aware of any recent modifications to analyst estimates for American Express. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.01% upward. At present, American Express boasts a Zacks Rank of #3 (Hold).
Looking at its valuation, American Express is holding a Forward P/E ratio of 19.35. This expresses a premium compared to the average Forward P/E of 10.85 of its industry.
Meanwhile, AXP's PEG ratio is currently 1.43. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Financial - Miscellaneous Services industry held an average PEG ratio of 0.97.
The Financial - Miscellaneous Services industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 89, which puts it in the top 37% 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.
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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