American Express Stock Sees Decline Amid Market Upswing

In a recent trading session, American Express (AXP) saw its stock price drop to $179.79, a minor dip of 0.67% from its last closing. This downward move contrasts with broader market trends, as the S&P 500 experienced a 0.88% rise on the same day. Other major indexes like the Dow and the tech-focused Nasdaq also reported gains of 0.54% and 1.35%, respectively.

Performance in the Finance Sector

Over the past month, American Express shares have shown a slight increase of 0.19%, which outperforms the overall Finance sector's drop of 4%. However, it still trails behind the S&P 500's moderate gain of 0.64% during the same time frame.

Upcoming Earnings Report

Investors are keeping a keen eye on American Express as it prepares to publish its earnings report on January 26, 2024. Expectations are set for the company to announce earnings of $2.64 per share, which would signify a strong year-over-year growth of 27.54%. Projected revenue is also anticipated to rise by 13.08% from the previous year, reaching an estimated $16.03 billion.

Analysts’ Estimations and Company Ranking

Analysts' revisions to their estimates can offer insights into short-term business trends and are often taken as indicators of a company's future performance. Lately, American Express has seen a positive increase of 0.55% in consensus EPS estimates over the last 30 days. Resultingly, the company currently holds a Zacks Rank of #2 (Buy), according to the Zacks Rank system that ranges from #1 (Strong Buy) to #5 (Strong Sell).

Valuation Metrics

When looking at the company's valuation, American Express has a Forward P/E ratio of 14.53, which is higher than the industry average of 10.17, suggesting a premium valuation relative to its peers. The stock also trades at a PEG ratio of 1.01, involving expected earnings growth, compared to an industry average of 0.92.

Industry Outlook

The Financial - Miscellaneous Services industry, to which American Express belongs, is ranked at 176 by Zacks Industry Rank, placing it in the lower 31% of more than 250 industries. Historical data indicates that industries in the top 50% tend to perform significantly better than those in the bottom half.

AmericanExpress, StockMarket, Finance