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American Express (AXP) Stock Moves -0.16%: What You Should Know

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American Express (AXP - Free Report) closed at $171.55 in the latest trading session, marking a -0.16% move from the prior day. This change was narrower than the S&P 500's daily loss of 0.38%. At the same time, the Dow added 0.27%, and the tech-heavy Nasdaq lost 4.19%.

Coming into today, shares of the credit card issuer and global payments company had gained 12.02% in the past month. In that same time, the Finance sector gained 2.65%, while the S&P 500 gained 3.78%.

Investors will be hoping for strength from American Express as it approaches its next earnings release. The company is expected to report EPS of $2.82, up 9.73% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $15.31 billion, up 14.29% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $11.15 per share and revenue of $61.03 billion, which would represent changes of +13.2% and +15.46%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for American Express. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.06% higher. American Express is currently a Zacks Rank #3 (Hold).

Investors should also note American Express's current valuation metrics, including its Forward P/E ratio of 15.4. This valuation marks a premium compared to its industry's average Forward P/E of 8.83.

Meanwhile, AXP's PEG ratio is currently 1.07. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Financial - Miscellaneous Services stocks are, on average, holding a PEG ratio of 0.97 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 185, putting it in the bottom 27% 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

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