American Express (AXP) moved -0.81% from the previous trading session to conclude the most recent trading day at $149.90. This shift was slower than the S&P 500’s daily increase of 0.02%. The tech-heavy Nasdaq increased by 0.22% at the same time that the Dow fell by 0.2%.
Shares of the worldwide payments company and credit card issuer had lost 5.69% over the previous month going into today, underperforming the Finance sector’s loss of 1.61% and the S&P 500’s loss of 2.86% during that same period.
As the company approaches the publication of its subsequent results, which is anticipated to be on October 20, 2023, American Express will be trying to project strength. Earnings per share (EPS) are anticipated to be $2.98, up 20.65% from the same quarter last year. According to the Zacks Consensus Estimate for revenue, net sales will total $15.43 billion, up 13.81% from the same quarter last year.
According to Zacks Consensus Estimates, AXP will earn $11.13 per share and generate $60.81 billion in revenue for the entire year. These outcomes would signify changes of +12.99% and +15.04%, respectively, from the previous year.
Analyst estimates for American Express may have recently changed, which may be noticed by investors. Recent changes frequently reflect the newest short-term commercial trends. As a result, optimistic estimate revisions show analyst confidence in the company’s operations and profitability.
We believe these estimate changes are directly tied to near-team stock movements based on our research. To capitalise on this, we created the Zacks Rank, a proprietary methodology that considers these estimate revisions and offers a usable rating system.
With #1 stocks producing an average yearly return of +25% since 1988, the Zacks Rank methodology, which spans from #1 (Strong Buy) to #5 (Strong Sell), has an excellent outside-audited track record of outperformance. Within the last month, the Zacks Consensus EPS estimate has decreased by 0.06%. Zacks now rates American Express as a #3 (Hold) stock.
Additionally, investors should be aware of American Express’s current valuation measures, such as its 13.58 Forward P/E ratio. Given that the Forward P/E for its sector is 10.12, one might argue that American Express is trading at a premium in comparison.
We should also point out that the PEG ratio for AXP is 0.95. Similar to the well-known P/E ratio, the PEG ratio additionally considers the predicted earnings growth rate of the firm. As of yesterday’s closure, the PEG ratio for AXP’s sector was 1.15 on average.
The Finance sector includes the Financial – Miscellaneous Services industry. With a Zacks Industry Rank of 162, this sector is now in the bottom 36% of all 250+ sectors.
By calculating the average Zacks Rank of the individual stocks inside the industry groups, the Zacks Industry Rank assesses the health of our industry groups. According to our analysis, the top 50% of graded industries perform two times better than the bottom 50%.
Use Zacks.com to keep track of all of these stock-moving metrics as well as other information in the next trading sessions.