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American Express (AXP) Outpaces Stock Market Gains: What You Should Know
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The most recent trading session ended with American Express (AXP - Free Report) standing at $185.75, reflecting a +1.64% shift from the previouse trading day's closing. This change outpaced the S&P 500's 0.59% gain on the day. At the same time, the Dow added 0.68%, and the tech-heavy Nasdaq gained 0.66%.
The credit card issuer and global payments company's shares have seen an increase of 11.54% over the last month, surpassing the Finance sector's gain of 7.84% and the S&P 500's gain of 5.16%.
The upcoming earnings release of American Express will be of great interest to investors. The company's earnings report is expected on January 26, 2024. On that day, American Express is projected to report earnings of $2.63 per share, which would represent year-over-year growth of 27.05%. At the same time, our most recent consensus estimate is projecting a revenue of $16.01 billion, reflecting a 12.96% rise from the equivalent quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $11.21 per share and a revenue of $60.73 billion, representing changes of +13.81% and +14.88%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for American Express. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.1% higher. American Express is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note American Express's current valuation metrics, including its Forward P/E ratio of 16.3. This indicates a premium in contrast to its industry's Forward P/E of 10.67.
Investors should also note that AXP has a PEG ratio of 1.14 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Financial - Miscellaneous Services industry stood at 1.18 at the close of the market yesterday.
The Financial - Miscellaneous Services industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 160, which puts it in the bottom 37% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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American Express (AXP) Outpaces Stock Market Gains: What You Should Know
The most recent trading session ended with American Express (AXP - Free Report) standing at $185.75, reflecting a +1.64% shift from the previouse trading day's closing. This change outpaced the S&P 500's 0.59% gain on the day. At the same time, the Dow added 0.68%, and the tech-heavy Nasdaq gained 0.66%.
The credit card issuer and global payments company's shares have seen an increase of 11.54% over the last month, surpassing the Finance sector's gain of 7.84% and the S&P 500's gain of 5.16%.
The upcoming earnings release of American Express will be of great interest to investors. The company's earnings report is expected on January 26, 2024. On that day, American Express is projected to report earnings of $2.63 per share, which would represent year-over-year growth of 27.05%. At the same time, our most recent consensus estimate is projecting a revenue of $16.01 billion, reflecting a 12.96% rise from the equivalent quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $11.21 per share and a revenue of $60.73 billion, representing changes of +13.81% and +14.88%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for American Express. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.1% higher. American Express is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note American Express's current valuation metrics, including its Forward P/E ratio of 16.3. This indicates a premium in contrast to its industry's Forward P/E of 10.67.
Investors should also note that AXP has a PEG ratio of 1.14 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Financial - Miscellaneous Services industry stood at 1.18 at the close of the market yesterday.
The Financial - Miscellaneous Services industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 160, which puts it in the bottom 37% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.