American Express (AXP) closed the most recent trading day at $316.98, moving -1.78% from the previous trading session. This move lagged the S&P 500's daily loss of 0.07%. Meanwhile, the Dow experienced a drop of 0.37%, and the technology-dominated Nasdaq saw an increase of 0.03%.
The stock of credit card issuer and global payments company has risen by 7.02% in the past month, leading the Finance sector's gain of 2.38% and the S&P 500's gain of 3.94%.
The upcoming earnings release of American Express will be of great interest to investors. The company's earnings report is expected on July 18, 2025. On that day, American Express is projected to report earnings of $3.85 per share, which would represent year-over-year growth of 10.32%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $17.7 billion, up 8.35% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $15.21 per share and a revenue of $71.28 billion, representing changes of +13.93% and +8.08%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for American Express. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, 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, there's been a 0.03% rise in the Zacks Consensus EPS estimate. Currently, American Express is carrying a Zacks Rank of #3 (Hold).
Looking at valuation, American Express is presently trading at a Forward P/E ratio of 21.22. This signifies a premium in comparison to the average Forward P/E of 11.97 for its industry.
We can additionally observe that AXP currently boasts a PEG ratio of 1.57. 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 1.06 at yesterday's closing price.
The Financial - Miscellaneous Services industry is part of the Finance sector. At present, this industry carries a Zacks Industry Rank of 154, placing it within the bottom 38% of over 250 industries.
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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in 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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