American Express (
AXP Quick Quote AXP - Free Report) closed at $162.75 in the latest trading session, marking a -1.1% move from the prior day. This change was narrower than the S&P 500's daily loss of 1.65%. At the same time, the Dow lost 1.63%, and the tech-heavy Nasdaq lost 6.65%.
Heading into today, shares of the credit card issuer and global payments company had lost 5.14% over the past month, outpacing the Finance sector's loss of 6.77% and lagging the S&P 500's gain of 0.3% 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 $2.66 per share, which would represent a year-over-year decline of 2.56%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $13.99 billion, up 19.18% from the year-ago period.
AXP's full-year Zacks Consensus Estimates are calling for earnings of $11.25 per share and revenue of $61.11 billion. These results would represent year-over-year changes of +14.21% and +15.6%, 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 0.03% higher. American Express is currently a Zacks Rank #2 (Buy).
Investors should also note American Express's current valuation metrics, including its Forward P/E ratio of 14.63. Its industry sports an average Forward P/E of 9.15, so we one might conclude that American Express is trading at a premium comparatively.
It is also worth noting that AXP currently has a PEG ratio of 1.01. 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. The Financial - Miscellaneous Services industry currently had an average PEG ratio of 0.74 as of yesterday's close.
The Financial - Miscellaneous Services industry is part of the Finance sector. This group has a Zacks Industry Rank of 153, putting it in the bottom 40% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.