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American Express (AXP) Stock Moves -1.35%: What You Should Know

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American Express (AXP - Free Report) closed the most recent trading day at $158.74, moving -1.35% from the previous trading session. This change was narrower than the S&P 500's 1.89% loss on the day. Elsewhere, the Dow lost 1.3%, while the tech-heavy Nasdaq lost 0.17%.

Prior to today's trading, shares of the credit card issuer and global payments company had lost 1.99% over the past month. This has lagged the Finance sector's gain of 3.26% and the S&P 500's loss of 1.79% in that time.

Investors will be hoping for strength from American Express as it approaches its next earnings release, which is expected to be January 25, 2022. The company is expected to report EPS of $1.78, up 1.14% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $11.6 billion, up 24.02% from the prior-year quarter.

It is also important to note the recent changes to analyst estimates for American Express. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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. The Zacks Consensus EPS estimate has moved 0.02% lower within the past month. American Express is currently a Zacks Rank #3 (Hold).

Looking at its valuation, American Express is holding a Forward P/E ratio of 16.56. This represents a premium compared to its industry's average Forward P/E of 12.19.

Investors should also note that AXP has a PEG ratio of 0.59 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. AXP's industry had an average PEG ratio of 0.81 as of yesterday's close.

The Financial - Miscellaneous Services industry is part of the Finance sector. This group has a Zacks Industry Rank of 77, putting it in the top 31% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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