Why the Market Dipped But American Express (AXP) Gained Today
The latest trading session saw American Express (AXP) ending at $230.21, denoting a +0.39% adjustment from its last day's close. The stock's performance was ahead of the S&P 500's daily loss of 0.25%. Elsewhere, the Dow saw an upswing of 0.77%, while the tech-heavy Nasdaq depreciated by 0.79%.
The credit card issuer and global payments company's shares have seen a decrease of 4.49% over the last month, not keeping up with the Finance sector's loss of 1.89% and the S&P 500's gain of 3.59%.
The investment community will be closely monitoring the performance of American Express in its forthcoming earnings report. The company is scheduled to release its earnings on July 19, 2024. In that report, analysts expect American Express to post earnings of $3.22 per share. This would mark year-over-year growth of 11.42%. In the meantime, our current consensus estimate forecasts the revenue to be $16.6 billion, indicating a 10.25% growth compared to the corresponding quarter of the prior year.
AXP's full-year Zacks Consensus Estimates are calling for earnings of $13 per share and revenue of $66.44 billion. These results would represent year-over-year changes of +15.97% and +9.79%, respectively.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for American Express. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 past month, the Zacks Consensus EPS estimate has shifted 0.05% downward. 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 17.64. This indicates a premium in contrast to its industry's Forward P/E of 10.62.
Also, we should mention that AXP has a PEG ratio of 1.3. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Financial - Miscellaneous Services industry had an average PEG ratio of 0.77 as trading concluded yesterday.
The Financial - Miscellaneous Services industry is part of the Finance sector. At present, this industry carries a Zacks Industry Rank of 152, placing it within the bottom 40% of over 250 industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow AXP in the coming trading sessions, be sure to utilize Zacks.com.
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American Express Company (AXP) : Free Stock Analysis Report