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American Express (AXP) Outpaces Stock Market Gains: What You Should Know
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In the latest trading session, American Express (AXP - Free Report) closed at $175.38, marking a +0.94% move from the previous day. This change outpaced the S&P 500's 0.92% gain on the day. Meanwhile, the Dow gained 0.51%, and the Nasdaq, a tech-heavy index, added 0.54%.
Heading into today, shares of the credit card issuer and global payments company had gained 6.39% over the past month, outpacing the Finance sector's gain of 3.59% and the S&P 500's loss of 0.85% 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. In that report, analysts expect American Express to post earnings of $1.74 per share. This would mark a year-over-year decline of 1.14%. Meanwhile, our latest consensus estimate is calling for revenue of $11.55 billion, up 23.55% from the prior-year quarter.
Any recent changes to analyst estimates for American Express should also be noted by investors. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
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 0.03% higher within the past month. American Express is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, American Express is currently trading at a Forward P/E ratio of 17.95. For comparison, its industry has an average Forward P/E of 12.02, which means American Express is trading at a premium to the group.
Also, we should mention that AXP has a PEG ratio of 0.9. 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. AXP's industry 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 83, putting it in the top 33% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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American Express (AXP) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, American Express (AXP - Free Report) closed at $175.38, marking a +0.94% move from the previous day. This change outpaced the S&P 500's 0.92% gain on the day. Meanwhile, the Dow gained 0.51%, and the Nasdaq, a tech-heavy index, added 0.54%.
Heading into today, shares of the credit card issuer and global payments company had gained 6.39% over the past month, outpacing the Finance sector's gain of 3.59% and the S&P 500's loss of 0.85% 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. In that report, analysts expect American Express to post earnings of $1.74 per share. This would mark a year-over-year decline of 1.14%. Meanwhile, our latest consensus estimate is calling for revenue of $11.55 billion, up 23.55% from the prior-year quarter.
Any recent changes to analyst estimates for American Express should also be noted by investors. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
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 0.03% higher within the past month. American Express is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, American Express is currently trading at a Forward P/E ratio of 17.95. For comparison, its industry has an average Forward P/E of 12.02, which means American Express is trading at a premium to the group.
Also, we should mention that AXP has a PEG ratio of 0.9. 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. AXP's industry 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 83, putting it in the top 33% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.