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Here's Why American Express (AXP) Fell More Than Broader Market

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In the latest trading session, American Express (AXP - Free Report) closed at $294.39, marking a -1.96% move from the previous day. The stock fell short of the S&P 500, which registered a loss of 1.36% for the day. Meanwhile, the Dow lost 1.64%, and the Nasdaq, a tech-heavy index, lost 1.46%.

The credit card issuer and global payments company's shares have seen a decrease of 12.85% over the last month, not keeping up with the Finance sector's loss of 5.19% and the S&P 500's loss of 1.76%.

The upcoming earnings release of American Express will be of great interest to investors. The company's earnings report is expected on April 23, 2026. In that report, analysts expect American Express to post earnings of $3.98 per share. This would mark year-over-year growth of 9.34%. At the same time, our most recent consensus estimate is projecting a revenue of $18.64 billion, reflecting a 9.85% rise from the equivalent quarter last year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $17.5 per share and revenue of $78.73 billion. These totals would mark changes of +13.78% and +9.01%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for American Express. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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, there's been a 0.09% fall in the Zacks Consensus EPS estimate. American Express currently has a Zacks Rank of #3 (Hold).

In terms of valuation, American Express is currently trading at a Forward P/E ratio of 17.16. For comparison, its industry has an average Forward P/E of 10.61, which means American Express is trading at a premium to the group.

We can additionally observe that AXP currently boasts a PEG ratio of 1.27. 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. As of the close of trade yesterday, the Financial - Miscellaneous Services industry held an average PEG ratio of 0.82.

The Financial - Miscellaneous Services industry is part of the Finance sector. Currently, this industry holds a Zacks Industry Rank of 146, positioning it in the bottom 41% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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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