In the latest trading session, American Express (AXP) closed at $134.90, marking a -1.23% move from the previous day. This move lagged the S&P 500's daily loss of 1.05%. Elsewhere, the Dow lost 0.78%, while the tech-heavy Nasdaq lost 1.79%.
Heading into today, shares of the credit card issuer and global payments company had gained 3.97% over the past month, outpacing the Finance sector's gain of 0.26% and the S&P 500's gain of 1.5% in that time.
AXP will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $2.20, up 9.45% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $11.27 billion, up 8.72% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $9.04 per share and revenue of $47.09 billion, which would represent changes of +10.24% and +8.11%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for AXP. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.24% higher. AXP is currently a Zacks Rank #3 (Hold).
Investors should also note AXP's current valuation metrics, including its Forward P/E ratio of 15.1. This valuation marks a premium compared to its industry's average Forward P/E of 13.28.
We can also see that AXP currently has a PEG ratio of 1.45. 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. The Financial - Miscellaneous Services was holding an average PEG ratio of 1.82 at yesterday's closing price.
The Financial - Miscellaneous Services industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 164, which puts it in the bottom 36% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.