American Express (AXP) closed the most recent trading day at $119.06, moving +0.22% from the previous trading session. This change traded in line with S&P 500. At the same time, the Dow added 0.39%, and the tech-heavy Nasdaq gained 0.16%.
Prior to today's trading, shares of the credit card issuer and global payments company had gained 2.05% over the past month. This has outpaced the Finance sector's gain of 1.63% and lagged the S&P 500's gain of 3.42% in that time.
Investors will be hoping for strength from AXP as it approaches its next earnings release. The company is expected to report EPS of $2.01, up 15.52% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $11.38 billion, up 8.7% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $8.14 per share and revenue of $43.60 billion. These totals would mark changes of +11.05% and +8.09%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for AXP. 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Within the past 30 days, our consensus EPS projection has moved 0.23% lower. AXP currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that AXP has a Forward P/E ratio of 14.59 right now. This valuation marks a premium compared to its industry's average Forward P/E of 11.57.
Also, we should mention that AXP has a PEG ratio of 1.38. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Financial - Miscellaneous Services industry currently had an average PEG ratio of 1.84 as of yesterday's close.
The Financial - Miscellaneous Services industry is part of the Finance sector. This group has a Zacks Industry Rank of 160, putting it in the bottom 38% 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.
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