Back to top

Image: Bigstock

American Express (AXP) Stock Drops Despite Market Gains: Important Facts to Note

Read MoreHide Full Article

American Express (AXP - Free Report) closed the most recent trading day at $359.59, moving -4.27% from the previous trading session. This change lagged the S&P 500's 0.16% gain on the day. On the other hand, the Dow registered a gain of 0.17%, and the technology-centric Nasdaq increased by 0.26%.

Shares of the credit card issuer and global payments company witnessed a loss of 1.82% over the previous month, trailing the performance of the Finance sector with its gain of 3.24%, and the S&P 500's gain of 1.89%.

The investment community will be closely monitoring the performance of American Express in its forthcoming earnings report. The company is scheduled to release its earnings on January 30, 2026. In that report, analysts expect American Express to post earnings of $3.55 per share. This would mark year-over-year growth of 16.78%. Simultaneously, our latest consensus estimate expects the revenue to be $18.86 billion, showing a 9.78% escalation compared to the year-ago quarter.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $15.41 per share and a revenue of $72.11 billion, indicating changes of +15.43% and 0%, respectively, from the former 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 business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.13% increase. 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 21.38. This indicates a premium in contrast to its industry's Forward P/E of 11.84.

We can additionally observe that AXP currently boasts a PEG ratio of 1.57. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Financial - Miscellaneous Services stocks are, on average, holding a PEG ratio of 0.94 based on yesterday's closing prices.

The Financial - Miscellaneous Services industry is part of the Finance sector. At present, this industry carries a Zacks Industry Rank of 157, placing it within the bottom 36% of over 250 industries.

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.

To follow AXP in the coming trading sessions, be sure to utilize Zacks.com.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


American Express Company (AXP) - free report >>

Published in