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American Express (AXP) Dips More Than Broader Markets: What You Should Know
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American Express (AXP - Free Report) closed the most recent trading day at $150.06, moving -1.47% from the previous trading session. This change lagged the S&P 500's daily loss of 1.18%. At the same time, the Dow lost 1.34%, and the tech-heavy Nasdaq lost 0.92%.
Heading into today, shares of the credit card issuer and global payments company had lost 12.05% over the past month, lagging the Finance sector's loss of 4.48% and the S&P 500's loss of 0.73% in that time.
Wall Street will be looking for positivity from American Express as it approaches its next earnings report date. The company is expected to report EPS of $1.71, down 2.84% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $11.34 billion, up 21.25% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $9.22 per share and revenue of $41.5 billion, which would represent changes of +72.66% and +15%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for American Express. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Within the past 30 days, our consensus EPS projection has moved 0.33% higher. American Express is currently a Zacks Rank #3 (Hold).
Investors should also note American Express's current valuation metrics, including its Forward P/E ratio of 16.51. Its industry sports an average Forward P/E of 11.21, so we one might conclude that American Express is trading at a premium comparatively.
Also, we should mention that AXP has a PEG ratio of 0.83. 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 0.84 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 86, which puts it in the top 34% 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.
To follow AXP in the coming trading sessions, be sure to utilize Zacks.com.
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American Express (AXP) Dips More Than Broader Markets: What You Should Know
American Express (AXP - Free Report) closed the most recent trading day at $150.06, moving -1.47% from the previous trading session. This change lagged the S&P 500's daily loss of 1.18%. At the same time, the Dow lost 1.34%, and the tech-heavy Nasdaq lost 0.92%.
Heading into today, shares of the credit card issuer and global payments company had lost 12.05% over the past month, lagging the Finance sector's loss of 4.48% and the S&P 500's loss of 0.73% in that time.
Wall Street will be looking for positivity from American Express as it approaches its next earnings report date. The company is expected to report EPS of $1.71, down 2.84% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $11.34 billion, up 21.25% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $9.22 per share and revenue of $41.5 billion, which would represent changes of +72.66% and +15%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for American Express. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Within the past 30 days, our consensus EPS projection has moved 0.33% higher. American Express is currently a Zacks Rank #3 (Hold).
Investors should also note American Express's current valuation metrics, including its Forward P/E ratio of 16.51. Its industry sports an average Forward P/E of 11.21, so we one might conclude that American Express is trading at a premium comparatively.
Also, we should mention that AXP has a PEG ratio of 0.83. 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 0.84 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 86, which puts it in the top 34% 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.
To follow AXP in the coming trading sessions, be sure to utilize Zacks.com.