We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
American Express (AXP) Gains But Lags Market: What You Should Know
Read MoreHide Full Article
In the latest trading session, American Express (AXP - Free Report) closed at $162.47, marking a +0.97% move from the previous day. This move lagged the S&P 500's daily gain of 1.02%. Meanwhile, the Dow gained 0.74%, and the Nasdaq, a tech-heavy index, lost 0.4%.
Heading into today, shares of the credit card issuer and global payments company had lost 5.82% over the past month, lagging the Finance sector's loss of 1.63% and the S&P 500's loss of 0.91% in that time.
American Express will be looking to display strength as it nears its next earnings release, which is expected to be January 25, 2022. On that day, American Express is projected to report earnings of $1.77 per share, which would represent year-over-year growth of 0.57%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $11.38 billion, up 21.69% from the year-ago period.
AXP's full-year Zacks Consensus Estimates are calling for earnings of $9.55 per share and revenue of $41.58 billion. These results would represent year-over-year changes of +78.84% and +15.23%, respectively.
Any recent changes to analyst estimates for American Express should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.84% higher. American Express is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that American Express has a Forward P/E ratio of 16.85 right now. For comparison, its industry has an average Forward P/E of 11.77, which means American Express is trading at a premium to the group.
It is also worth noting that AXP currently has a PEG ratio of 0.84. 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 0.85 as of yesterday's close.
The Financial - Miscellaneous Services industry is part of the Finance sector. This group has a Zacks Industry Rank of 101, putting it in the top 40% 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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
American Express (AXP) Gains But Lags Market: What You Should Know
In the latest trading session, American Express (AXP - Free Report) closed at $162.47, marking a +0.97% move from the previous day. This move lagged the S&P 500's daily gain of 1.02%. Meanwhile, the Dow gained 0.74%, and the Nasdaq, a tech-heavy index, lost 0.4%.
Heading into today, shares of the credit card issuer and global payments company had lost 5.82% over the past month, lagging the Finance sector's loss of 1.63% and the S&P 500's loss of 0.91% in that time.
American Express will be looking to display strength as it nears its next earnings release, which is expected to be January 25, 2022. On that day, American Express is projected to report earnings of $1.77 per share, which would represent year-over-year growth of 0.57%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $11.38 billion, up 21.69% from the year-ago period.
AXP's full-year Zacks Consensus Estimates are calling for earnings of $9.55 per share and revenue of $41.58 billion. These results would represent year-over-year changes of +78.84% and +15.23%, respectively.
Any recent changes to analyst estimates for American Express should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.84% higher. American Express is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that American Express has a Forward P/E ratio of 16.85 right now. For comparison, its industry has an average Forward P/E of 11.77, which means American Express is trading at a premium to the group.
It is also worth noting that AXP currently has a PEG ratio of 0.84. 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 0.85 as of yesterday's close.
The Financial - Miscellaneous Services industry is part of the Finance sector. This group has a Zacks Industry Rank of 101, putting it in the top 40% 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.