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Why American Express (AXP) Outpaced the Stock Market Today
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American Express (AXP - Free Report) closed at $182.76 in the latest trading session, marking a +1.25% move from the prior day. The stock outperformed the S&P 500, which registered a daily gain of 0.45%.
Investors will be eagerly watching for the performance of American Express in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on January 26, 2024. On that day, American Express is projected to report earnings of $2.62 per share, which would represent year-over-year growth of 26.57%. In the meantime, our current consensus estimate forecasts the revenue to be $16.01 billion, indicating a 12.96% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $11.20 per share and revenue of $60.73 billion, which would represent changes of +13.71% and +14.88%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for American Express. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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 0.02% higher. American Express currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, American Express is holding a Forward P/E ratio of 16.11. This represents a premium compared to its industry's average Forward P/E of 10.42.
It's also important to note that AXP currently trades at a PEG ratio of 1.12. 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. The Financial - Miscellaneous Services was holding an average PEG ratio of 1.15 at yesterday's closing price.
The Financial - Miscellaneous Services industry is part of the Finance sector. With its current Zacks Industry Rank of 147, this industry ranks in the bottom 42% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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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Why American Express (AXP) Outpaced the Stock Market Today
American Express (AXP - Free Report) closed at $182.76 in the latest trading session, marking a +1.25% move from the prior day. The stock outperformed the S&P 500, which registered a daily gain of 0.45%.
Investors will be eagerly watching for the performance of American Express in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on January 26, 2024. On that day, American Express is projected to report earnings of $2.62 per share, which would represent year-over-year growth of 26.57%. In the meantime, our current consensus estimate forecasts the revenue to be $16.01 billion, indicating a 12.96% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $11.20 per share and revenue of $60.73 billion, which would represent changes of +13.71% and +14.88%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for American Express. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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 0.02% higher. American Express currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, American Express is holding a Forward P/E ratio of 16.11. This represents a premium compared to its industry's average Forward P/E of 10.42.
It's also important to note that AXP currently trades at a PEG ratio of 1.12. 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. The Financial - Miscellaneous Services was holding an average PEG ratio of 1.15 at yesterday's closing price.
The Financial - Miscellaneous Services industry is part of the Finance sector. With its current Zacks Industry Rank of 147, this industry ranks in the bottom 42% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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.