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American Express (AXP) Stock Falls Amid Market Uptick: What Investors Need to Know

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The most recent trading session ended with American Express (AXP - Free Report) standing at $301.88, reflecting a -0.4% shift from the previouse trading day's closing. This change lagged the S&P 500's daily gain of 0.55%. On the other hand, the Dow registered a loss of 0.06%, and the technology-centric Nasdaq increased by 1.24%.

The upcoming earnings release of American Express will be of great interest to investors. The company's earnings report is expected on January 24, 2025. The company is expected to report EPS of $3.02, up 15.27% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $17.19 billion, indicating an 8.82% increase compared to the same quarter of the previous year.

Investors should also take note of any recent adjustments to analyst estimates for American Express. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.09% higher. American Express is currently sporting a Zacks Rank of #3 (Hold).

Looking at valuation, American Express is presently trading at a Forward P/E ratio of 19.97. For comparison, its industry has an average Forward P/E of 10.24, which means American Express is trading at a premium to the group.

It's also important to note that AXP currently trades at a PEG ratio of 1.53. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Financial - Miscellaneous Services stocks are, on average, holding a PEG ratio of 0.85 based on yesterday's closing prices.

The Financial - Miscellaneous Services industry is part of the Finance sector. At present, this industry carries a Zacks Industry Rank of 57, placing it within the top 23% of over 250 industries.

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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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