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American Express (AXP) Declines More Than Market: Some Information for Investors

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American Express (AXP - Free Report) closed the most recent trading day at $186.32, moving -1.06% from the previous trading session. The stock fell short of the S&P 500, which registered a loss of 0.8% for the day. At the same time, the Dow lost 0.76%, and the tech-heavy Nasdaq lost 1.18%.

The credit card issuer and global payments company's stock has climbed by 10.33% in the past month, exceeding the Finance sector's gain of 5.42% and the S&P 500's gain of 3.4%.

The investment community will be paying close attention to the earnings performance of American Express in its upcoming release. The company is slated to reveal its earnings on January 26, 2024. In that report, analysts expect American Express to post earnings of $2.63 per share. This would mark year-over-year growth of 27.05%. Meanwhile, our latest consensus estimate is calling for revenue of $16.01 billion, up 12.95% from the prior-year quarter.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for American Express. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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.

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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.07% higher. Currently, American Express is carrying a Zacks Rank of #3 (Hold).

Investors should also note American Express's current valuation metrics, including its Forward P/E ratio of 15.17. This expresses a premium compared to the average Forward P/E of 10.38 of its industry.

It is also worth noting that AXP currently has a PEG ratio of 1.06. 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 industry had an average PEG ratio of 0.92 as trading concluded yesterday.

The Financial - Miscellaneous Services industry is part of the Finance sector. With its current Zacks Industry Rank of 156, this industry ranks in the bottom 39% of all industries, numbering over 250.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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