Yahoo Finance American Express (AXP) Beats Stock Market Upswing: What Investors Need to Know
In the latest market close, American Express (AXP) reached $237.75, with a +1.38% movement compared to the previous day. The stock's performance was ahead of the S&P 500's daily gain of 0.07%. Elsewhere, the Dow saw a downswing of 0.13%, while the tech-heavy Nasdaq appreciated by 0.14%.
Shares of the credit card issuer and global payments company have appreciated by 0.89% over the course of the past month, outperforming the Finance sector's loss of 5.5% and lagging the S&P 500's gain of 4.34%.
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. The company is predicted to post an EPS of $3.21, indicating a 11.07% growth compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $16.57 billion, up 10.08% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $12.98 per share and a revenue of $66.38 billion, signifying shifts of +15.79% and +9.69%, respectively, from the last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for American Express. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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 past month, the Zacks Consensus EPS estimate has shifted 0.25% downward. Currently, American Express is carrying a Zacks Rank of #4 (Sell).
Looking at valuation, American Express is presently trading at a Forward P/E ratio of 18.07. This indicates a premium in contrast to its industry's Forward P/E of 10.99.
Meanwhile, AXP's PEG ratio is currently 1.34. 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. Financial - Miscellaneous Services stocks are, on average, holding a PEG ratio of 0.75 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 145, placing it within the bottom 43% of over 250 industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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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American Express Company (AXP) : Free Stock Analysis Report
