In the latest trading session, American Express (AXP) closed at $167.43, marking a -0.67% move from the previous day. This move lagged the S&P 500's daily loss of 0.2%. Meanwhile, the Dow lost 0.59%, and the Nasdaq, a tech-heavy index, lost 1.54%.
Heading into today, shares of the credit card issuer and global payments company had gained 10.42% over the past month, outpacing the Finance sector's gain of 2.29% and the S&P 500's gain of 4.14% in that time.
American Express will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $2.82, up 9.73% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $15.31 billion, up 14.29% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $11.15 per share and revenue of $61.03 billion. These totals would mark changes of +13.2% and +15.46%, respectively, from last year.
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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.06% higher within the past month. American Express is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, American Express is currently trading at a Forward P/E ratio of 15.11. This valuation marks a premium compared to its industry's average Forward P/E of 8.62.
It is also worth noting that AXP currently has a PEG ratio of 1.05. 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 was holding an average PEG ratio of 0.95 at yesterday's closing price.
The Financial - Miscellaneous Services industry is part of the Finance sector. This group has a Zacks Industry Rank of 196, putting it in the bottom 23% 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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