Yahoo Finance American Express (AXP) Sees a More Significant Dip Than Broader Market: Some Facts to Know
American Express (AXP) closed the latest trading day at $225.96, indicating a -1.38% change from the previous session's end. This change lagged the S&P 500's daily loss of 0.14%. Elsewhere, the Dow saw a downswing of 0.77%, while the tech-heavy Nasdaq appreciated by 0.17%.
The credit card issuer and global payments company's stock has climbed by 7.07% in the past month, exceeding the Finance sector's gain of 4.92% and the S&P 500's gain of 5.34%.
The investment community will be closely monitoring the performance of American Express in its forthcoming earnings report. The company's upcoming EPS is projected at $3.01, signifying a 25.42% increase compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $15.75 billion, indicating a 10.31% increase compared to the same quarter of the previous year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $12.83 per share and a revenue of $66.21 billion, signifying shifts of +14.45% and +9.4%, respectively, from the last year.
Any recent changes to analyst estimates for American Express should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, there's been a 0.02% rise in the Zacks Consensus EPS estimate. At present, American Express boasts a Zacks Rank of #3 (Hold).
In terms of valuation, American Express is presently being traded at a Forward P/E ratio of 17.85. This valuation marks a premium compared to its industry's average Forward P/E of 11.35.
We can also see that AXP currently has a PEG ratio of 1.29. 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 average PEG ratio for the Financial - Miscellaneous Services industry stood at 1 at the close of the market yesterday.
The Financial - Miscellaneous Services industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 95, which puts it in the top 38% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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American Express Company (AXP) : Free Stock Analysis Report
