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American Express (AXP) Stock Moves -0.29%: What You Should Know

Zacks Equity Research
·3-min read

American Express (AXP) closed at $160.92 in the latest trading session, marking a -0.29% move from the prior day. This change was narrower than the S&P 500's daily loss of 1.1%. At the same time, the Dow lost 0.89%, and the tech-heavy Nasdaq gained 0.03%.

Coming into today, shares of the credit card issuer and global payments company had lost 0.66% in the past month. In that same time, the Finance sector gained 2.59%, while the S&P 500 lost 1.81%.

Wall Street will be looking for positivity from American Express as it approaches its next earnings report date. This is expected to be January 25, 2022. The company is expected to report EPS of $1.78, up 1.14% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $11.6 billion, up 24.02% from the prior-year quarter.

Investors might also notice recent changes to analyst estimates for American Express. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.02% lower within the past month. American Express is currently sporting a Zacks Rank of #3 (Hold).

Investors should also note American Express's current valuation metrics, including its Forward P/E ratio of 16.67. This valuation marks a premium compared to its industry's average Forward P/E of 12.38.

Also, we should mention that AXP has a PEG ratio of 0.59. 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 currently had an average PEG ratio of 0.82 as of yesterday's close.

The Financial - Miscellaneous Services industry is part of the Finance sector. This group has a Zacks Industry Rank of 77, putting it in the top 31% 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.

To follow AXP in the coming trading sessions, be sure to utilize Zacks.com.


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