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American Express (AXP) Outperforms Broader Market: What You Need to Know
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American Express (AXP - Free Report) ended the recent trading session at $226.63, demonstrating a +0.49% swing from the preceding day's closing price. This change outpaced the S&P 500's 0.11% gain on the day. Meanwhile, the Dow lost 0.11%, and the Nasdaq, a tech-heavy index, added 0.23%.
Heading into today, shares of the credit card issuer and global payments company had gained 3.84% over the past month, outpacing the Finance sector's gain of 2.37% and the S&P 500's gain of 1.5% in that time.
The investment community will be closely monitoring the performance of American Express in its forthcoming earnings report. The company is scheduled to release its earnings on April 19, 2024. In that report, analysts expect American Express to post earnings of $3.01 per share. This would mark year-over-year growth of 25.42%. Alongside, our most recent consensus estimate is anticipating revenue of $15.75 billion, indicating a 10.31% upward movement from the same quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $12.83 per share and revenue of $66.21 billion, indicating changes of +14.45% and +9.4%, respectively, compared to the previous year.
Investors should also pay attention to any latest changes in 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.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.08% higher. American Express is currently sporting a Zacks Rank of #2 (Buy).
In terms of valuation, American Express is presently being traded at a Forward P/E ratio of 17.57. For comparison, its industry has an average Forward P/E of 10.55, which means American Express is trading at a premium to the group.
We can additionally observe that AXP currently boasts a PEG ratio of 1.26. 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. As of the close of trade yesterday, the Financial - Miscellaneous Services industry held an average PEG ratio of 0.97.
The Financial - Miscellaneous Services industry is part of the Finance sector. With its current Zacks Industry Rank of 144, this industry ranks in the bottom 43% of all industries, numbering over 250.
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) Outperforms Broader Market: What You Need to Know
American Express (AXP - Free Report) ended the recent trading session at $226.63, demonstrating a +0.49% swing from the preceding day's closing price. This change outpaced the S&P 500's 0.11% gain on the day. Meanwhile, the Dow lost 0.11%, and the Nasdaq, a tech-heavy index, added 0.23%.
Heading into today, shares of the credit card issuer and global payments company had gained 3.84% over the past month, outpacing the Finance sector's gain of 2.37% and the S&P 500's gain of 1.5% in that time.
The investment community will be closely monitoring the performance of American Express in its forthcoming earnings report. The company is scheduled to release its earnings on April 19, 2024. In that report, analysts expect American Express to post earnings of $3.01 per share. This would mark year-over-year growth of 25.42%. Alongside, our most recent consensus estimate is anticipating revenue of $15.75 billion, indicating a 10.31% upward movement from the same quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $12.83 per share and revenue of $66.21 billion, indicating changes of +14.45% and +9.4%, respectively, compared to the previous year.
Investors should also pay attention to any latest changes in 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.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.08% higher. American Express is currently sporting a Zacks Rank of #2 (Buy).
In terms of valuation, American Express is presently being traded at a Forward P/E ratio of 17.57. For comparison, its industry has an average Forward P/E of 10.55, which means American Express is trading at a premium to the group.
We can additionally observe that AXP currently boasts a PEG ratio of 1.26. 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. As of the close of trade yesterday, the Financial - Miscellaneous Services industry held an average PEG ratio of 0.97.
The Financial - Miscellaneous Services industry is part of the Finance sector. With its current Zacks Industry Rank of 144, this industry ranks in the bottom 43% of all industries, numbering over 250.
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.