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American Express (AXP) Gains But Lags Market: What You Should Know

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American Express (AXP - Free Report) closed the most recent trading day at $94.52, moving +1.18% from the previous trading session. This move lagged the S&P 500's daily gain of 1.47%. At the same time, the Dow added 2.32%, and the tech-heavy Nasdaq gained 1.2%.

Prior to today's trading, shares of the credit card issuer and global payments company had lost 4.73% over the past month. This has lagged the Finance sector's gain of 0.41% and the S&P 500's gain of 0.74% in that time.

Wall Street will be looking for positivity from AXP as it approaches its next earnings report date. This is expected to be July 24, 2020. In that report, analysts expect AXP to post earnings of $0.54 per share. This would mark a year-over-year decline of 73.91%. Our most recent consensus estimate is calling for quarterly revenue of $8.62 billion, down 20.44% from the year-ago period.

AXP's full-year Zacks Consensus Estimates are calling for earnings of $2.82 per share and revenue of $37.71 billion. These results would represent year-over-year changes of -65.61% and -13.42%, respectively.

Investors might also notice recent changes to analyst estimates for AXP. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team 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.

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. Within the past 30 days, our consensus EPS projection has moved 2.77% lower. AXP is currently a Zacks Rank #3 (Hold).

In terms of valuation, AXP is currently trading at a Forward P/E ratio of 33.09. This valuation marks a premium compared to its industry's average Forward P/E of 13.72.

Meanwhile, AXP's PEG ratio is currently 3.16. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Financial - Miscellaneous Services stocks are, on average, holding a PEG ratio of 2.76 based on yesterday's closing prices.

The Financial - Miscellaneous Services industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 203, which puts it in the bottom 21% 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.

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