Why American Express (AXP) Outpaced the Stock Market Today

In the latest close session, American Express (AXP) was up +1.03% at $346.18. This move outpaced the S&P 500's daily gain of 0.69%. Meanwhile, the Dow gained 0.47%, and the Nasdaq, a tech-heavy index, added 0.9%. The stock of credit card issuer and global payments company has fallen by 6.89% in the past month, lagging the Finance sector's loss of 1.46% and the S&P 500's loss of 1%.The investment community will be paying close attention to the earnings performance of American Express in its upcoming release. The company is predicted to post an EPS of $3.97, indicating a 9.07% growth compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $18.64 billion, indicating a 9.85% upward movement from the same quarter last year. Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $17.51 per share and revenue of $78.76 billion. These totals would mark changes of +13.85% and +9.04%, respectively, from last year. Investors should also note any recent changes to analyst estimates for American Express. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability. Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. 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. Over the past month, the Zacks Consensus EPS estimate has shifted 0.08% upward. As of now, American Express holds a Zacks Rank of #3 (Hold). Digging into valuation, American Express currently has a Forward P/E ratio of 19.57. This represents a premium compared to its industry average Forward P/E of 11.22. Meanwhile, AXP's PEG ratio is currently 1.45. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Financial - Miscellaneous Services stocks are, on average, holding a PEG ratio of 0.93 based on yesterday's closing prices. The Financial - Miscellaneous Services industry is part of the Finance sector. With its current Zacks Industry Rank of 80, this industry ranks in the top 33% of all industries, numbering over 250. The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions. #1 Semiconductor Stock to Buy (Not NVDA)The incredible demand for data is fueling the market's next digital gold rush. As data centers continue to be built and constantly upgraded, the companies that provide the hardware for these behemoths will become the NVIDIAs of tomorrow.One under-the-radar chipmaker is uniquely positioned to take advantage of the next growth stage of this market. It specializes in semiconductor products that titans like NVIDIA don't build. It's just beginning to enter the spotlight, which is exactly where you want to be.See This Stock Now for Free >>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 ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks