Why American Express (AXP) Outpaced the Stock Market Today

The most recent trading session ended with American Express (AXP) standing at $297.02, reflecting a +1.27% shift from the previouse trading day's closing. The stock outpaced the S&P 500's daily gain of 0.16%. At the same time, the Dow added 0.86%, and the tech-heavy Nasdaq lost 0.38%.The credit card issuer and global payments company's shares have seen a decrease of 2.93% over the last month, surpassing the Finance sector's loss of 5.04% and falling behind the S&P 500's loss of 2.2%.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. The company is expected to report EPS of $3.02, up 15.27% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $17.18 billion, indicating an 8.76% growth compared to the corresponding quarter of the prior year.Investors should also take note of any recent adjustments to analyst estimates for American Express. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.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 0.48% higher. 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 19.26. This signifies a premium in comparison to the average Forward P/E of 9.96 for its industry.One should further note that AXP currently holds a PEG ratio of 1.38. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Financial - Miscellaneous Services industry had an average PEG ratio of 0.86 as trading concluded yesterday.The Financial - Miscellaneous Services industry is part of the Finance sector. With its current Zacks Industry Rank of 57, this industry ranks in the top 23% of all industries, numbering over 250.The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding 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