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American Express (AXP) Gains But Lags Market: What You Should Know

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American Express (AXP - Free Report) closed at $167.02 in the latest trading session, marking a +0.11% move from the prior day. The stock lagged the S&P 500's daily gain of 0.31%. At the same time, the Dow added 0.05%, and the tech-heavy Nasdaq gained 0.14%.

Prior to today's trading, shares of the credit card issuer and global payments company had lost 0.19% over the past month. This has was narrower than the Finance sector's loss of 0.4% and the S&P 500's loss of 1.38% in that time.

Wall Street will be looking for positivity from American Express as it approaches its next earnings report date. On that day, American Express is projected to report earnings of $2.38 per share, which would represent a year-over-year decline of 15%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $12.39 billion, up 20.97% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $9.77 per share and revenue of $50.47 billion, which would represent changes of -2.5% and +19.08%, respectively, from the prior year.

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. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.12% lower. 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 17.08. This represents a premium compared to its industry's average Forward P/E of 10.49.

We can also see that AXP currently has a PEG ratio of 1.34. 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 0.77 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 221, which puts it in the bottom 13% 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.

Make sure to utilize to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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