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American Express (AXP) Exceeds Market Returns: Some Facts to Consider

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American Express (AXP - Free Report) closed at $305.73 in the latest trading session, marking a +1.85% move from the prior day. This move outpaced the S&P 500's daily gain of 0.44%. Elsewhere, the Dow gained 0.36%, while the tech-heavy Nasdaq added 0.54%.

Heading into today, shares of the credit card issuer and global payments company had lost 0.27% over the past month, outpacing the Finance sector's loss of 2.92% and the S&P 500's loss of 3.31%.

Analysts and investors alike will be keeping a close eye on the performance of American Express in its upcoming earnings disclosure. The company's earnings report is set to go public on April 23, 2026. The company is forecasted to report an EPS of $4.01, showcasing a 10.16% upward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $18.64 billion, up 9.85% from the prior-year quarter.

For the full year, the Zacks Consensus Estimates project earnings of $17.53 per share and a revenue of $78.73 billion, demonstrating changes of +13.98% and +9.01%, respectively, from the preceding year.

Investors should also pay attention to any latest changes in analyst estimates for American Express. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.15% increase. 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 17.13. This valuation marks a premium compared to its industry average Forward P/E of 10.56.

It is also worth noting that AXP currently has a PEG ratio of 1.27. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Financial - Miscellaneous Services was holding an average PEG ratio of 0.9 at yesterday's closing price.

The Financial - Miscellaneous Services industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 150, which puts it in the bottom 39% 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.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.

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