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American Express (AXP) Outpaces Stock Market Gains: What You Should Know

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American Express (AXP - Free Report) closed the most recent trading day at $175.72, moving +1.36% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.15%.

Heading into today, shares of the credit card issuer and global payments company had gained 4.74% over the past month, outpacing the Finance sector's loss of 0.15% and the S&P 500's loss of 0.58% in that time.

Wall Street will be looking for positivity from AXP as it approaches its next earnings report date. This is expected to be October 22, 2021. In that report, analysts expect AXP to post earnings of $1.77 per share. This would mark year-over-year growth of 36.15%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $10.56 billion, up 20.67% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $8.81 per share and revenue of $40.88 billion, which would represent changes of +64.98% and +13.29%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for AXP. 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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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, the Zacks Consensus EPS estimate has moved 0.04% higher. AXP is currently sporting a Zacks Rank of #3 (Hold).

Investors should also note AXP's current valuation metrics, including its Forward P/E ratio of 19.67. This valuation marks a premium compared to its industry's average Forward P/E of 12.01.

Investors should also note that AXP has a PEG ratio of 0.98 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Financial - Miscellaneous Services industry currently had an average PEG ratio of 0.89 as of yesterday's close.

The Financial - Miscellaneous Services industry is part of the Finance sector. This group has a Zacks Industry Rank of 95, putting it in the top 38% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

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