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Why the Market Dipped But American Express (AXP) Gained Today

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American Express (AXP - Free Report) closed the latest trading day at $295.96, indicating a +0.01% change from the previous session's end. The stock's change was more than the S&P 500's daily loss of 0.53%. Meanwhile, the Dow lost 0.26%, and the Nasdaq, a tech-heavy index, lost 0.83%.

The credit card issuer and global payments company's shares have seen an increase of 7.13% over the last month, surpassing the Finance sector's gain of 3.08% and the S&P 500's gain of 5.17%.

Analysts and investors alike will be keeping a close eye on the performance of American Express in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $3.86, reflecting a 10.6% increase from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $17.69 billion, indicating an 8.34% growth compared to the corresponding quarter of the prior year.

AXP's full-year Zacks Consensus Estimates are calling for earnings of $15.20 per share and revenue of $71.27 billion. These results would represent year-over-year changes of +13.86% and +8.06%, respectively.

It's also important for investors to be aware of any recent modifications to analyst estimates for American Express. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.15% higher. American Express is currently a Zacks Rank #3 (Hold).

In the context of valuation, American Express is at present trading with a Forward P/E ratio of 19.47. This valuation marks a premium compared to its industry's average Forward P/E of 10.86.

Meanwhile, AXP's PEG ratio is currently 1.44. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Financial - Miscellaneous Services industry held an average PEG ratio of 0.95.

The Financial - Miscellaneous Services industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 137, which puts it in the bottom 45% 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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