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American Express (AXP) Dips More Than Broader Markets: What You Should Know
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In the latest trading session, American Express (AXP - Free Report) closed at $161.08, marking a -0.91% move from the previous day. This move lagged the S&P 500's daily loss of 0.25%. At the same time, the Dow added 0.24%, and the tech-heavy Nasdaq lost 1.88%.
Coming into today, shares of the credit card issuer and global payments company had lost 7.28% in the past month. In that same time, the Finance sector lost 7.07%, while the S&P 500 gained 1.48%.
American Express will be looking to display strength as it nears its next earnings release, which is expected to be April 20, 2023. The company is expected to report EPS of $2.66, down 2.56% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $13.98 billion, up 19.15% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $11.25 per share and revenue of $61.11 billion. These totals would mark changes of +14.21% and +15.6%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for American Express. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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.
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 #2 (Buy).
In terms of valuation, American Express is currently trading at a Forward P/E ratio of 14.45. This valuation marks a premium compared to its industry's average Forward P/E of 8.79.
We can also see that AXP currently has a PEG ratio of 1. 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. Financial - Miscellaneous Services stocks are, on average, holding a PEG ratio of 0.75 based on yesterday's closing prices.
The Financial - Miscellaneous Services industry is part of the Finance sector. This group has a Zacks Industry Rank of 174, putting it in the bottom 31% 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.
To follow AXP in the coming trading sessions, be sure to utilize Zacks.com.
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American Express (AXP) Dips More Than Broader Markets: What You Should Know
In the latest trading session, American Express (AXP - Free Report) closed at $161.08, marking a -0.91% move from the previous day. This move lagged the S&P 500's daily loss of 0.25%. At the same time, the Dow added 0.24%, and the tech-heavy Nasdaq lost 1.88%.
Coming into today, shares of the credit card issuer and global payments company had lost 7.28% in the past month. In that same time, the Finance sector lost 7.07%, while the S&P 500 gained 1.48%.
American Express will be looking to display strength as it nears its next earnings release, which is expected to be April 20, 2023. The company is expected to report EPS of $2.66, down 2.56% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $13.98 billion, up 19.15% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $11.25 per share and revenue of $61.11 billion. These totals would mark changes of +14.21% and +15.6%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for American Express. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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.
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 #2 (Buy).
In terms of valuation, American Express is currently trading at a Forward P/E ratio of 14.45. This valuation marks a premium compared to its industry's average Forward P/E of 8.79.
We can also see that AXP currently has a PEG ratio of 1. 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. Financial - Miscellaneous Services stocks are, on average, holding a PEG ratio of 0.75 based on yesterday's closing prices.
The Financial - Miscellaneous Services industry is part of the Finance sector. This group has a Zacks Industry Rank of 174, putting it in the bottom 31% 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.
To follow AXP in the coming trading sessions, be sure to utilize Zacks.com.