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American Express (AXP) Ascends But Remains Behind Market: Some Facts to Note

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American Express (AXP - Free Report) ended the recent trading session at $276.52, demonstrating a +0.13% swing from the preceding day's closing price. This move lagged the S&P 500's daily gain of 0.77%. At the same time, the Dow added 0.47%, and the tech-heavy Nasdaq gained 0.87%.

The the stock of credit card issuer and global payments company has risen by 6.63% in the past month, leading the Finance sector's loss of 2.93% and the S&P 500's gain of 4.87%.

Analysts and investors alike will be keeping a close eye on the performance of American Express in its upcoming earnings disclosure. The company's earnings report is set to go public on October 18, 2024. The company is predicted to post an EPS of $3.27, indicating a 0.91% decline compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $16.65 billion, up 8.24% from the year-ago period.

For the full year, the Zacks Consensus Estimates project earnings of $13.14 per share and a revenue of $65.98 billion, demonstrating changes of +17.22% and +9.03%, respectively, from the preceding year.

Investors should also take note of any recent adjustments to analyst estimates for American Express. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.11% higher within the past month. American Express currently has a Zacks Rank of #3 (Hold).

From a valuation perspective, American Express is currently exchanging hands at a Forward P/E ratio of 21.02. This signifies a premium in comparison to the average Forward P/E of 12.26 for its industry.

It is also worth noting that AXP currently has a PEG ratio of 1.53. 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. AXP's industry had an average PEG ratio of 1.15 as of yesterday's close.

The Financial - Miscellaneous Services industry is part of the Finance sector. With its current Zacks Industry Rank of 155, this industry ranks in the bottom 39% of all industries, numbering over 250.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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