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American Express (AXP) Stock Moves -1.97%: What You Should Know

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American Express (AXP - Free Report) closed at $137.79 in the latest trading session, marking a -1.97% move from the prior day. This change was narrower than the S&P 500's daily loss of 2.11%. Meanwhile, the Dow lost 1.54%, and the Nasdaq, a tech-heavy index, lost 0.3%.

Prior to today's trading, shares of the credit card issuer and global payments company had lost 7.53% over the past month. This has was narrower than the Finance sector's loss of 8.04% and the S&P 500's loss of 8.19% in that time.

Investors will be hoping for strength from American Express as it approaches its next earnings release, which is expected to be October 21, 2022. In that report, analysts expect American Express to post earnings of $2.38 per share. This would mark year-over-year growth of 4.85%. Meanwhile, our latest consensus estimate is calling for revenue of $13.51 billion, up 23.6% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $9.88 per share and revenue of $52.83 billion, which would represent changes of -1.4% and +24.66%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for American Express. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.25% higher within the past month. American Express is holding a Zacks Rank of #2 (Buy) right now.

Looking at its valuation, American Express is holding a Forward P/E ratio of 14.23. For comparison, its industry has an average Forward P/E of 9.94, which means American Express is trading at a premium to the group.

We can also see that AXP currently has a PEG ratio of 1.15. 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. Financial - Miscellaneous Services stocks are, on average, holding a PEG ratio of 0.59 based on yesterday's closing prices.

The Financial - Miscellaneous Services industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 74, which puts it in the top 30% 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.

To follow AXP in the coming trading sessions, be sure to utilize Zacks.com.


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