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Why American Express (AXP) Outpaced the Stock Market Today
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In the latest close session, American Express (AXP - Free Report) was up +1.54% at $320.66. This change outpaced the S&P 500's 0.41% gain on the day. Elsewhere, the Dow gained 0.3%, while the tech-heavy Nasdaq added 0.44%.
Shares of the credit card issuer and global payments company have appreciated by 1.63% over the course of the past month, outperforming the Finance sector's gain of 0.42%, and the S&P 500's gain of 0.87%.
Market participants will be closely following the financial results of American Express in its upcoming release. On that day, American Express is projected to report earnings of $3.9 per share, which would represent year-over-year growth of 11.75%. Simultaneously, our latest consensus estimate expects the revenue to be $17.99 billion, showing a 8.14% escalation compared to the year-ago quarter.
AXP's full-year Zacks Consensus Estimates are calling for earnings of $15.26 per share and revenue of $71.41 billion. These results would represent year-over-year changes of +14.31% and +8.28%, respectively.
Investors should also pay attention to any latest changes in analyst estimates for American Express. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. The Zacks Consensus EPS estimate has moved 0.01% higher within the past month. American Express is currently sporting a Zacks Rank of #3 (Hold).
From a valuation perspective, American Express is currently exchanging hands at a Forward P/E ratio of 20.69. For comparison, its industry has an average Forward P/E of 12.81, which means American Express is trading at a premium to the group.
Meanwhile, AXP's PEG ratio is currently 1.67. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Financial - Miscellaneous Services industry stood at 0.98 at the close of the market yesterday.
The Financial - Miscellaneous Services industry is part of the Finance sector. Currently, this industry holds a Zacks Industry Rank of 50, positioning it in the top 21% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within 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 follow all of these stock-moving metrics, and many more, on Zacks.com.
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Why American Express (AXP) Outpaced the Stock Market Today
In the latest close session, American Express (AXP - Free Report) was up +1.54% at $320.66. This change outpaced the S&P 500's 0.41% gain on the day. Elsewhere, the Dow gained 0.3%, while the tech-heavy Nasdaq added 0.44%.
Shares of the credit card issuer and global payments company have appreciated by 1.63% over the course of the past month, outperforming the Finance sector's gain of 0.42%, and the S&P 500's gain of 0.87%.
Market participants will be closely following the financial results of American Express in its upcoming release. On that day, American Express is projected to report earnings of $3.9 per share, which would represent year-over-year growth of 11.75%. Simultaneously, our latest consensus estimate expects the revenue to be $17.99 billion, showing a 8.14% escalation compared to the year-ago quarter.
AXP's full-year Zacks Consensus Estimates are calling for earnings of $15.26 per share and revenue of $71.41 billion. These results would represent year-over-year changes of +14.31% and +8.28%, respectively.
Investors should also pay attention to any latest changes in analyst estimates for American Express. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. The Zacks Consensus EPS estimate has moved 0.01% higher within the past month. American Express is currently sporting a Zacks Rank of #3 (Hold).
From a valuation perspective, American Express is currently exchanging hands at a Forward P/E ratio of 20.69. For comparison, its industry has an average Forward P/E of 12.81, which means American Express is trading at a premium to the group.
Meanwhile, AXP's PEG ratio is currently 1.67. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Financial - Miscellaneous Services industry stood at 0.98 at the close of the market yesterday.
The Financial - Miscellaneous Services industry is part of the Finance sector. Currently, this industry holds a Zacks Industry Rank of 50, positioning it in the top 21% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within 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 follow all of these stock-moving metrics, and many more, on Zacks.com.