American Express (AXP) closed at $322.53 in the latest trading session, marking a +1.11% move from the prior day. The stock's change was more than the S&P 500's daily loss of 0.11%. Meanwhile, the Dow experienced a rise of 0.91%, and the technology-dominated Nasdaq saw a decrease of 0.82%.
Prior to today's trading, shares of the credit card issuer and global payments company had gained 8.01% outpaced the Finance sector's gain of 3.03% and the S&P 500's gain of 5.17%.
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 July 18, 2025. It is anticipated that the company will report an EPS of $3.85, marking a 10.32% rise compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $17.7 billion, indicating a 8.35% upward movement from the same quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $15.21 per share and a revenue of $71.28 billion, indicating changes of +13.93% and +8.08%, respectively, from the former year.
Investors should also note any recent changes to analyst estimates for American Express. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, there's been a 0.1% rise in the Zacks Consensus EPS estimate. American Express presently features a Zacks Rank of #3 (Hold).
In the context of valuation, American Express is at present trading with a Forward P/E ratio of 20.98. This expresses a premium compared to the average Forward P/E of 11.85 of its industry.
We can also see that AXP currently has a PEG ratio of 1.55. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Financial - Miscellaneous Services industry stood at 1.03 at the close of the market yesterday.
The Financial - Miscellaneous Services industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 149, which puts it in the bottom 40% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming 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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