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American Express (AXP) Declines More Than Market: Some Information for Investors

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American Express (AXP - Free Report) closed at $327.97 in the latest trading session, marking a -1.21% move from the prior day. This move lagged the S&P 500's daily loss of 0.38%. Elsewhere, the Dow lost 0.2%, while the tech-heavy Nasdaq lost 0.67%.

Shares of the credit card issuer and global payments company witnessed a gain of 2.02% over the previous month, beating the performance of the Finance sector with its gain of 1.43%, and underperforming the S&P 500's gain of 4.06%.

Investors will be eagerly watching for the performance of American Express in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on October 17, 2025. The company's earnings per share (EPS) are projected to be $3.95, reflecting a 13.18% increase from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $17.99 billion, indicating a 8.13% upward movement from the same quarter last year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $15.26 per share and a revenue of $71.41 billion, representing changes of +14.31% and +8.28%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for American Express. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.11% lower within the past month. At present, American Express boasts a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that American Express has a Forward P/E ratio of 21.76 right now. For comparison, its industry has an average Forward P/E of 12.52, which means American Express is trading at a premium to the group.

Also, we should mention that AXP has a PEG ratio of 1.76. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Financial - Miscellaneous Services industry was having an average PEG ratio of 0.99.

The Financial - Miscellaneous Services industry is part of the Finance sector. With its current Zacks Industry Rank of 86, this industry ranks in the top 35% of all industries, numbering over 250.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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