Yahoo Finance American Express (AXP) Dips More Than Broader Markets: What You Should Know
American Express (AXP) closed the most recent trading day at $140.26, moving -1.94% from the previous trading session. This move lagged the S&P 500's daily loss of 1.72%. At the same time, the Dow lost 1.62%, and the tech-heavy Nasdaq gained 0.09%.
Prior to today's trading, shares of the credit card issuer and global payments company had lost 11.84% over the past month. This has lagged the Finance sector's loss of 7.22% and the S&P 500's loss of 9.09% in that time.
Wall Street will be looking for positivity from American Express as it approaches its next earnings report date. The company is expected to report EPS of $2.38, up 4.85% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $13.51 billion, up 23.6% from the year-ago period.
AXP's full-year Zacks Consensus Estimates are calling for earnings of $9.88 per share and revenue of $52.83 billion. These results would represent year-over-year changes of -1.4% and +24.66%, respectively.
It is also important to note the recent changes to analyst estimates for American Express. These recent revisions tend to reflect the evolving nature of short-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, 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 0.25% higher within the past month. American Express currently has a Zacks Rank of #3 (Hold).
In terms of valuation, American Express is currently trading at a Forward P/E ratio of 14.48. Its industry sports an average Forward P/E of 10.39, so we one might conclude that American Express is trading at a premium comparatively.
Meanwhile, AXP's PEG ratio is currently 1.17. 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. The Financial - Miscellaneous Services industry currently had an average PEG ratio of 0.6 as of yesterday's close.
The Financial - Miscellaneous Services industry is part of the Finance sector. This group has a Zacks Industry Rank of 142, putting it in the bottom 44% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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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