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American Express (AXP) Rises As Market Takes a Dip: Key Facts
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American Express (AXP - Free Report) ended the recent trading session at $336.00, demonstrating a +2.74% change from the preceding day's closing price. This change outpaced the S&P 500's 0.1% loss on the day. On the other hand, the Dow registered a gain of 0.57%, and the technology-centric Nasdaq decreased by 0.33%.
Shares of the credit card issuer and global payments company have appreciated by 6.84% over the course of the past month, outperforming the Finance sector's gain of 2.52%, and the S&P 500's gain of 2.57%.
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 $3.95 per share, which would represent year-over-year growth of 13.18%. Meanwhile, the latest consensus estimate predicts the revenue to be $17.99 billion, indicating a 8.14% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $15.26 per share and revenue of $71.41 billion, which would represent changes of +14.31% and +8.28%, respectively, from the prior year.
Any recent changes to analyst estimates for American Express should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent 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 witnessed a 0.02% increase. American Express presently features a Zacks Rank of #3 (Hold).
With respect to valuation, American Express is currently being traded at a Forward P/E ratio of 21.43. For comparison, its industry has an average Forward P/E of 13.04, which means American Express is trading at a premium to the group.
It's also important to note that AXP currently trades at a PEG ratio of 1.73. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As of the close of trade yesterday, the Financial - Miscellaneous Services industry held an average PEG ratio of 0.96.
The Financial - Miscellaneous Services industry is part of the Finance sector. At present, this industry carries a Zacks Industry Rank of 59, placing it within the top 24% of over 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.
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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American Express (AXP) Rises As Market Takes a Dip: Key Facts
American Express (AXP - Free Report) ended the recent trading session at $336.00, demonstrating a +2.74% change from the preceding day's closing price. This change outpaced the S&P 500's 0.1% loss on the day. On the other hand, the Dow registered a gain of 0.57%, and the technology-centric Nasdaq decreased by 0.33%.
Shares of the credit card issuer and global payments company have appreciated by 6.84% over the course of the past month, outperforming the Finance sector's gain of 2.52%, and the S&P 500's gain of 2.57%.
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 $3.95 per share, which would represent year-over-year growth of 13.18%. Meanwhile, the latest consensus estimate predicts the revenue to be $17.99 billion, indicating a 8.14% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $15.26 per share and revenue of $71.41 billion, which would represent changes of +14.31% and +8.28%, respectively, from the prior year.
Any recent changes to analyst estimates for American Express should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent 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 witnessed a 0.02% increase. American Express presently features a Zacks Rank of #3 (Hold).
With respect to valuation, American Express is currently being traded at a Forward P/E ratio of 21.43. For comparison, its industry has an average Forward P/E of 13.04, which means American Express is trading at a premium to the group.
It's also important to note that AXP currently trades at a PEG ratio of 1.73. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As of the close of trade yesterday, the Financial - Miscellaneous Services industry held an average PEG ratio of 0.96.
The Financial - Miscellaneous Services industry is part of the Finance sector. At present, this industry carries a Zacks Industry Rank of 59, placing it within the top 24% of over 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.