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American Express (AXP) Dips More Than Broader Markets: What You Should Know

American Express (AXP) closed the most recent trading day at $159.48, moving -1.22% from the previous trading session. This move lagged the S&P 500's daily loss of 0.58%.

Coming into today, shares of the credit card issuer and global payments company had lost 2.59% in the past month. In that same time, the Finance sector lost 1.05%, while the S&P 500 gained 0.16%.

Wall Street will be looking for positivity from AXP as it approaches its next earnings report date. On that day, AXP is projected to report earnings of $1.78 per share, which would represent year-over-year growth of 36.92%. Our most recent consensus estimate is calling for quarterly revenue of $10.56 billion, up 20.7% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $8.82 per share and revenue of $40.94 billion. These totals would mark changes of +65.17% and +13.45%, respectively, from last year.

Any recent changes to analyst estimates for AXP should also be noted by investors. 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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.46% higher. AXP currently has a Zacks Rank of #3 (Hold).

In terms of valuation, AXP is currently trading at a Forward P/E ratio of 18.31. This valuation marks a premium compared to its industry's average Forward P/E of 12.08.

Meanwhile, AXP's PEG ratio is currently 0.92. 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. AXP's industry had an average PEG ratio of 0.84 as of yesterday's close.

The Financial - Miscellaneous Services industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 102, which puts it in the top 41% 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.

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


Tech IPOs With Massive Profit Potential

In the past few years, many popular platforms and like Uber and Airbnb finally made their way to the public markets. But the biggest paydays came from lesser-known names.

For example, electric carmaker X Peng shot up +299.4% in just 2 months. Think of it this way…

If you had put $5,000 into XPEV at its IPO in September 2020, you could have cashed out with $19,970 in November.

With record amounts of cash flooding into IPOs and a record-setting stock market, this year’s lineup could be even more lucrative.

See Zacks Hottest Tech IPOs Now >>

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American Express Company (AXP): Free Stock Analysis Report
 
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