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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 $175.44 in the latest trading session, marking a +0.71% move from the prior day. This move outpaced the S&P 500's daily gain of 0.12%. Elsewhere, the Dow gained 0.03%, while the tech-heavy Nasdaq added 5.14%.
American Express will be looking to display strength as it nears its next earnings release, which is expected to be July 21, 2023. On that day, American Express is projected to report earnings of $2.61 per share, which would represent year-over-year growth of 1.56%. Our most recent consensus estimate is calling for quarterly revenue of $15.31 billion, up 14.26% 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 billion, which would represent changes of +13.2% and +15.39%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for American Express. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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.
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 remained stagnant. American Express is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that American Express has a Forward P/E ratio of 15.63 right now. This represents a premium compared to its industry's average Forward P/E of 9.22.
Investors should also note that AXP has a PEG ratio of 1.09 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. Financial - Miscellaneous Services stocks are, on average, holding a PEG ratio of 0.89 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 197, putting it in the bottom 22% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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American Express (AXP) Outpaces Stock Market Gains: What You Should Know
American Express (AXP - Free Report) closed at $175.44 in the latest trading session, marking a +0.71% move from the prior day. This move outpaced the S&P 500's daily gain of 0.12%. Elsewhere, the Dow gained 0.03%, while the tech-heavy Nasdaq added 5.14%.
American Express will be looking to display strength as it nears its next earnings release, which is expected to be July 21, 2023. On that day, American Express is projected to report earnings of $2.61 per share, which would represent year-over-year growth of 1.56%. Our most recent consensus estimate is calling for quarterly revenue of $15.31 billion, up 14.26% 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 billion, which would represent changes of +13.2% and +15.39%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for American Express. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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.
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 remained stagnant. American Express is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that American Express has a Forward P/E ratio of 15.63 right now. This represents a premium compared to its industry's average Forward P/E of 9.22.
Investors should also note that AXP has a PEG ratio of 1.09 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. Financial - Miscellaneous Services stocks are, on average, holding a PEG ratio of 0.89 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 197, putting it in the bottom 22% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.