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American Express (AXP) Outpaces Stock Market Gains: What You Should Know
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American Express (AXP - Free Report) closed at $154 in the latest trading session, marking a +1.58% move from the prior day. This change outpaced the S&P 500's 1.19% gain on the day. Meanwhile, the Dow gained 0.76%, and the Nasdaq, a tech-heavy index, added 0.29%.
Coming into today, shares of the credit card issuer and global payments company had gained 3.12% in the past month. In that same time, the Finance sector gained 6.33%, while the S&P 500 gained 4.06%.
Wall Street will be looking for positivity from American Express as it approaches its next earnings report date. This is expected to be January 27, 2023. On that day, American Express is projected to report earnings of $2.18 per share, which would represent no growth from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $14.25 billion, up 17.3% from the year-ago period.
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 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. 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 2.05% lower. American Express is currently sporting a Zacks Rank of #4 (Sell).
In terms of valuation, American Express is currently trading at a Forward P/E ratio of 14.27. This represents a premium compared to its industry's average Forward P/E of 9.56.
Investors should also note that AXP has a PEG ratio of 1.2 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 0.85 as of yesterday's close.
The Financial - Miscellaneous Services industry is part of the Finance sector. This group has a Zacks Industry Rank of 149, putting it in the bottom 41% 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.
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
American Express (AXP - Free Report) closed at $154 in the latest trading session, marking a +1.58% move from the prior day. This change outpaced the S&P 500's 1.19% gain on the day. Meanwhile, the Dow gained 0.76%, and the Nasdaq, a tech-heavy index, added 0.29%.
Coming into today, shares of the credit card issuer and global payments company had gained 3.12% in the past month. In that same time, the Finance sector gained 6.33%, while the S&P 500 gained 4.06%.
Wall Street will be looking for positivity from American Express as it approaches its next earnings report date. This is expected to be January 27, 2023. On that day, American Express is projected to report earnings of $2.18 per share, which would represent no growth from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $14.25 billion, up 17.3% from the year-ago period.
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 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. 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 2.05% lower. American Express is currently sporting a Zacks Rank of #4 (Sell).
In terms of valuation, American Express is currently trading at a Forward P/E ratio of 14.27. This represents a premium compared to its industry's average Forward P/E of 9.56.
Investors should also note that AXP has a PEG ratio of 1.2 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 0.85 as of yesterday's close.
The Financial - Miscellaneous Services industry is part of the Finance sector. This group has a Zacks Industry Rank of 149, putting it in the bottom 41% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.