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American Express (AXP) Dips More Than Broader Markets: What You Should Know

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In the latest trading session, American Express (AXP - Free Report) closed at $170.01, marking a -1.64% move from the previous day. This change lagged the S&P 500's 0.75% loss on the day.

Prior to today's trading, shares of the credit card issuer and global payments company had gained 6.61% over the past month. This has outpaced the Finance sector's loss of 1.53% and the S&P 500's gain of 2.74% in that time.

AXP will be looking to display strength as it nears its next earnings release, which is expected to be July 23, 2021. On that day, AXP is projected to report earnings of $1.60 per share, which would represent year-over-year growth of 451.72%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $9.48 billion, up 23.52% from the year-ago period.

AXP's full-year Zacks Consensus Estimates are calling for earnings of $7.62 per share and revenue of $39.3 billion. These results would represent year-over-year changes of +42.7% and +8.89%, respectively.

It is also important to note the recent changes to analyst estimates for AXP. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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 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, the Zacks Consensus EPS estimate has moved 1.11% higher. AXP currently has a Zacks Rank of #3 (Hold).

Digging into valuation, AXP currently has a Forward P/E ratio of 22.69. This valuation marks a premium compared to its industry's average Forward P/E of 12.14.

Also, we should mention that AXP has a PEG ratio of 1.68. 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. The Financial - Miscellaneous Services industry currently had an average PEG ratio of 0.97 as of yesterday's close.

The Financial - Miscellaneous Services industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 178, which puts it in the bottom 30% of all 250+ industries.

The Zacks Industry Rank includes is listed in order 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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