American Express (AXP) Gains But Lags Market: What You Should Know
American Express (AXP) closed the most recent trading day at $118.53, moving +0.65% from the previous trading session. This move lagged the S&P 500's daily gain of 1.1%. Elsewhere, the Dow gained 1.05%, while the tech-heavy Nasdaq added 1.32%.
Coming into today, shares of the credit card issuer and global payments company had lost 7.38% in the past month. In that same time, the Finance sector lost 6.43%, while the S&P 500 lost 5.05%.
Investors will be hoping for strength from AXP as it approaches its next earnings release. In that report, analysts expect AXP to post earnings of $2.08 per share. This would mark year-over-year growth of 10.64%. Our most recent consensus estimate is calling for quarterly revenue of $10.99 billion, up 8.29% from the year-ago period.
AXP's full-year Zacks Consensus Estimates are calling for earnings of $8.12 per share and revenue of $43.64 billion. These results would represent year-over-year changes of +10.78% and +8.18%, respectively.
Any recent changes to analyst estimates for AXP should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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. The Zacks Consensus EPS estimate has moved 0.02% lower within the past month. AXP is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that AXP has a Forward P/E ratio of 14.5 right now. This represents a premium compared to its industry's average Forward P/E of 11.03.
Meanwhile, AXP's PEG ratio is currently 1.32. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Financial - Miscellaneous Services was holding an average PEG ratio of 1.32 at yesterday's closing price.
The Financial - Miscellaneous Services industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 97, which puts it in the top 38% of all 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
Click to get this free report
American Express Company (AXP): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.