We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Buy the Surge in American Express Stock (AXP) as Q4 Earnings Approach?
Read MoreHide Full Article
Quarterly results from several of the major credit card companies will be a highlight of this week’s earnings lineup with a spotlight on American Express (AXP - Free Report) in particular.
Hitting fresh 52-week highs of $319 a share on Tuesday, AXP has soared over +70% in the last year. This has impressively outperformed the broader indexes and many of its credit card peers including Capital One’s (COF - Free Report) +49% and Mastercard’s (MA - Free Report) +20%.
That said, let’s see if the surge in American Express stock can continue as its Q4 earnings approach on Friday, January 24.
Image Source: Zacks Investment Research
American Express Q4 Expectations
American Express’s Q4 sales are expected to come in at $17.18 billion, a 9% increase from $15.8 billion in the comparative quarter. On the bottom line, Q4 EPS is thought to have spiked 15% to $3.03 versus $2.62 per share a year ago.
Rounding out fiscal 2024, the credit giant’s total sales are slated to increase 9% to $65.95 billion with annual earnings expected to climb 19% to $13.40 per share. Notably, American Express has surpassed the Zacks EPS Consensus in three of its last four quarterly reports with an average EPS surprise of 6.53%.
Image Source: Zacks Investment Research
FY25 Outlook
Looking ahead, American Express’s top line is projected to expand another 8% in FY25 to $71.48 billion. More impressive, annual earnings are expected to spike another 14% this year to $15.24 per share.
Image Source: Zacks Investment Research
AXP Valuation Comparison
What may intrigue investors is that AXP still trades at 20.5X forward earnings which is a slight discount to the benchmark S&P 500. AXP also trades nicely beneath Mastercard’s 32.3X but at a noticeable premium to Capital One’s 12.5X.
Image Source: Zacks Investment Research
Bottom Line
Ahead of its Q4 report, American Express stock lands a Zacks Rank #3 (Hold). Although AXP still trades at a reasonable valuation, American Express’s Q4 report will need to reconfirm the company’s attractive outlook after such an extensive rally.
However, long-term investors could be rewarded from current levels but better buying opportunities may be ahead, especially in the event of a post-earnings selloff.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Shutterstock
Buy the Surge in American Express Stock (AXP) as Q4 Earnings Approach?
Quarterly results from several of the major credit card companies will be a highlight of this week’s earnings lineup with a spotlight on American Express (AXP - Free Report) in particular.
Hitting fresh 52-week highs of $319 a share on Tuesday, AXP has soared over +70% in the last year. This has impressively outperformed the broader indexes and many of its credit card peers including Capital One’s (COF - Free Report) +49% and Mastercard’s (MA - Free Report) +20%.
That said, let’s see if the surge in American Express stock can continue as its Q4 earnings approach on Friday, January 24.
Image Source: Zacks Investment Research
American Express Q4 Expectations
American Express’s Q4 sales are expected to come in at $17.18 billion, a 9% increase from $15.8 billion in the comparative quarter. On the bottom line, Q4 EPS is thought to have spiked 15% to $3.03 versus $2.62 per share a year ago.
Rounding out fiscal 2024, the credit giant’s total sales are slated to increase 9% to $65.95 billion with annual earnings expected to climb 19% to $13.40 per share. Notably, American Express has surpassed the Zacks EPS Consensus in three of its last four quarterly reports with an average EPS surprise of 6.53%.
Image Source: Zacks Investment Research
FY25 Outlook
Looking ahead, American Express’s top line is projected to expand another 8% in FY25 to $71.48 billion. More impressive, annual earnings are expected to spike another 14% this year to $15.24 per share.
Image Source: Zacks Investment Research
AXP Valuation Comparison
What may intrigue investors is that AXP still trades at 20.5X forward earnings which is a slight discount to the benchmark S&P 500. AXP also trades nicely beneath Mastercard’s 32.3X but at a noticeable premium to Capital One’s 12.5X.
Image Source: Zacks Investment Research
Bottom Line
Ahead of its Q4 report, American Express stock lands a Zacks Rank #3 (Hold). Although AXP still trades at a reasonable valuation, American Express’s Q4 report will need to reconfirm the company’s attractive outlook after such an extensive rally.
However, long-term investors could be rewarded from current levels but better buying opportunities may be ahead, especially in the event of a post-earnings selloff.