In the latest close session, American Express (AXP) was up +2.92% at $308.38. The stock's performance was ahead of the S&P 500's daily gain of 1.11%. Meanwhile, the Dow gained 1.19%, and the Nasdaq, a tech-heavy index, added 1.43%.
Shares of the credit card issuer and global payments company witnessed a gain of 5.05% over the previous month, beating the performance of the Finance sector with its gain of 1.91%, and the S&P 500's gain of 3.92%.
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 July 18, 2025. The company is forecasted to report an EPS of $3.85, showcasing a 10.32% upward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $17.7 billion, up 8.35% from the prior-year quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $15.21 per share and revenue of $71.27 billion. These totals would mark changes of +13.93% and +8.08%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for American Express. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.1% higher. As of now, American Express holds a Zacks Rank of #3 (Hold).
With respect to valuation, American Express is currently being traded at a Forward P/E ratio of 19.7. This represents a premium compared to its industry average Forward P/E of 11.42.
Also, we should mention that AXP has a PEG ratio of 1.46. 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. AXP's industry had an average PEG ratio of 1.01 as of yesterday's close.
The Financial - Miscellaneous Services industry is part of the Finance sector. With its current Zacks Industry Rank of 95, this industry ranks in the top 39% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming 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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