American Express (AXP) Outpaces Stock Market Gains: What You Should Know

American Express (AXP) ended the recent trading session at $303.57, demonstrating a +0.47% swing from the preceding day's closing price. This move outpaced the S&P 500's daily gain of 0.38%. Meanwhile, the Dow experienced a drop of 0.25%, and the technology-dominated Nasdaq saw an increase of 1.24%.The credit card issuer and global payments company's stock has climbed by 5.32% in the past month, exceeding the Finance sector's gain of 0.1% and the S&P 500's gain of 1.17%.The upcoming earnings release of American Express will be of great interest to investors. The company's earnings report is expected on January 24, 2025. In that report, analysts expect American Express to post earnings of $3.01 per share. This would mark year-over-year growth of 14.89%. Meanwhile, our latest consensus estimate is calling for revenue of $17.19 billion, up 8.82% from the prior-year quarter.For the full year, the Zacks Consensus Estimates project earnings of $13.40 per share and a revenue of $65.97 billion, demonstrating changes of +19.54% and +9.01%, respectively, from the preceding year.Additionally, investors should keep an eye on any recent revisions to analyst forecasts for American Express. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding 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 a Zacks Rank #3 (Hold).In the context of valuation, American Express is at present trading with a Forward P/E ratio of 22.56. For comparison, its industry has an average Forward P/E of 13.35, which means American Express is trading at a premium to the group.It is also worth noting that AXP currently has a PEG ratio of 1.73. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the Financial - Miscellaneous Services industry stood at 1.09 at the close of the market yesterday.The Financial - Miscellaneous Services industry is part of the Finance sector. This group has a Zacks Industry Rank of 63, putting it in the top 26% 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.Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.1% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report American Express Company (AXP): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks