Why American Express (AXP) Dipped More Than Broader Market Today

American Express (AXP) closed at $292.27 in the latest trading session, marking a -2.38% move from the prior day. This change lagged the S&P 500's daily loss of 1.67%. Elsewhere, the Dow lost 1.73%, while the tech-heavy Nasdaq lost 2.15%.

The credit card issuer and global payments company's stock has dropped by 10.72% in the past month, falling short of the Finance sector's loss of 8% and the S&P 500's loss of 6.15%.

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 predicted to post an EPS of $3.98, indicating a 9.34% growth compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $18.64 billion, indicating a 9.85% growth compared to the corresponding quarter of the prior year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $17.53 per share and a revenue of $78.73 billion, representing changes of +13.98% and +9.01%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for American Express. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.15% higher. American Express presently features a Zacks Rank of #3 (Hold).

Looking at valuation, American Express is presently trading at a Forward P/E ratio of 17.08. This expresses a premium compared to the average Forward P/E of 9.94 of its industry.

One should further note that AXP currently holds a PEG ratio of 1.27. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Financial - Miscellaneous Services industry currently had an average PEG ratio of 0.83 as of yesterday's close.

The Financial - Miscellaneous Services industry is part of the Finance sector. This industry, currently bearing a Zacks Industry Rank of 99, finds itself in the top 41% 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.

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

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This article originally published on Zacks Investment Research (zacks.com).

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