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American Express (AXP) Increases Despite Market Slip: Here's What You Need to Know

The latest trading session saw American Express (AXP) ending at $224.82, denoting a +1.18% adjustment from its last day's close. The stock outpaced the S&P 500's daily loss of 0.04%. At the same time, the Dow lost 0.15%, and the tech-heavy Nasdaq gained 0.12%.

Coming into today, shares of the credit card issuer and global payments company had lost 7.93% in the past month. In that same time, the Finance sector lost 0.72%, while the S&P 500 gained 4.15%.

Investors will be eagerly watching for the performance of American Express in its upcoming earnings disclosure. The company is forecasted to report an EPS of $3.23, showcasing a 11.76% upward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $16.6 billion, indicating a 10.25% upward movement from the same quarter last year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $13.01 per share and revenue of $66.44 billion. These totals would mark changes of +16.06% and +9.8%, respectively, from last year.

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Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for American Express. These revisions typically reflect the latest short-term business trends, which can change frequently. 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 take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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 witnessed an unchanged state. American Express presently features a Zacks Rank of #3 (Hold).

With respect to valuation, American Express is currently being traded at a Forward P/E ratio of 17.08. For comparison, its industry has an average Forward P/E of 10.63, which means American Express is trading at a premium to the group.

Meanwhile, AXP's PEG ratio is currently 1.26. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Financial - Miscellaneous Services stocks are, on average, holding a PEG ratio of 0.7 based on yesterday's closing prices.

The Financial - Miscellaneous Services industry is part of the Finance sector. This group has a Zacks Industry Rank of 142, putting it in the bottom 44% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

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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American Express Company (AXP) : Free Stock Analysis Report

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Zacks Investment Research