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American Express (AXP) Declines More Than Market: Some Information for Investors
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In the latest close session, American Express (AXP - Free Report) was down 3.45% at $352.19. This change lagged the S&P 500's daily loss of 2.06%. On the other hand, the Dow registered a loss of 1.76%, and the technology-centric Nasdaq decreased by 2.39%.
The credit card issuer and global payments company's stock has dropped by 4.22% in the past month, falling short of the Finance sector's gain of 1.72% and the S&P 500's gain of 1.63%.
The investment community will be paying close attention to the earnings performance of American Express in its upcoming release. The company is slated to reveal its earnings on January 30, 2026. On that day, American Express is projected to report earnings of $3.54 per share, which would represent year-over-year growth of 16.45%. Meanwhile, the latest consensus estimate predicts the revenue to be $18.86 billion, indicating a 9.79% increase compared to the same quarter of the previous year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $15.38 per share and a revenue of $72.11 billion, signifying shifts of +15.21% and 0%, respectively, from the last year.
Investors should also pay attention to any latest changes in analyst estimates for American Express. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
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 past month, the Zacks Consensus EPS estimate has moved 0.05% lower. American Express presently features a Zacks Rank of #3 (Hold).
Investors should also note American Express's current valuation metrics, including its Forward P/E ratio of 20.8. For comparison, its industry has an average Forward P/E of 11.71, which means American Express is trading at a premium to the group.
It's also important to note that AXP currently trades at a PEG ratio of 1.53. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Financial - Miscellaneous Services industry was having an average PEG ratio of 1.09.
The Financial - Miscellaneous Services industry is part of the Finance sector. This industry, currently bearing a Zacks Industry Rank of 158, finds itself in the bottom 36% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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American Express (AXP) Declines More Than Market: Some Information for Investors
In the latest close session, American Express (AXP - Free Report) was down 3.45% at $352.19. This change lagged the S&P 500's daily loss of 2.06%. On the other hand, the Dow registered a loss of 1.76%, and the technology-centric Nasdaq decreased by 2.39%.
The credit card issuer and global payments company's stock has dropped by 4.22% in the past month, falling short of the Finance sector's gain of 1.72% and the S&P 500's gain of 1.63%.
The investment community will be paying close attention to the earnings performance of American Express in its upcoming release. The company is slated to reveal its earnings on January 30, 2026. On that day, American Express is projected to report earnings of $3.54 per share, which would represent year-over-year growth of 16.45%. Meanwhile, the latest consensus estimate predicts the revenue to be $18.86 billion, indicating a 9.79% increase compared to the same quarter of the previous year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $15.38 per share and a revenue of $72.11 billion, signifying shifts of +15.21% and 0%, respectively, from the last year.
Investors should also pay attention to any latest changes in analyst estimates for American Express. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
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 past month, the Zacks Consensus EPS estimate has moved 0.05% lower. American Express presently features a Zacks Rank of #3 (Hold).
Investors should also note American Express's current valuation metrics, including its Forward P/E ratio of 20.8. For comparison, its industry has an average Forward P/E of 11.71, which means American Express is trading at a premium to the group.
It's also important to note that AXP currently trades at a PEG ratio of 1.53. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Financial - Miscellaneous Services industry was having an average PEG ratio of 1.09.
The Financial - Miscellaneous Services industry is part of the Finance sector. This industry, currently bearing a Zacks Industry Rank of 158, finds itself in the bottom 36% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.