American Express (AXP) Sees Decline Outpacing Market: Insights for Investors

American Express (AXP - Free Report) concluded the latest trading day at $295.49, reflecting a decrease of -1.82% from the previous day's close. This decline is notably larger than the S&P 500, which experienced a loss of 1.76%. In comparison, the Dow Jones Industrial Average went down by 1.48%, while the tech-heavy Nasdaq saw a sharper drop of 2.64%.

Over the past month, American Express's stock has decreased by 5.19%. In this period, it has underperformed compared to the Finance sector, which gained 0.83%, and the S&P 500, which recorded a loss of 1.26%.

Investors are currently focusing on American Express's upcoming earnings report. The company is anticipated to announce earnings per share (EPS) of $3.48, which is a 4.5% increase from the same quarter last year. Additionally, revenue estimates stand at $17.05 billion, reflecting a growth of 7.92% compared to the previous year.

For the entire fiscal year, the Zacks Consensus Estimates predict that American Express will post earnings of $15.32 per share and revenue of $71.66 billion. These figures represent year-over-year changes of +14.76% for earnings and +8.65% for revenue.

It is also advisable for investors to keep an eye on any recent changes in analyst forecasts for American Express. Adjustments in these estimates usually indicate shifting business trends in the near future. An increase in estimates signifies analysts' optimism regarding the company's operations and profit potential.

Research indicates that changes in these estimates are closely tied to stock price movements shortly thereafter. To help investors navigate this information, the Zacks Rank system has been developed; this proprietary model integrates estimate changes to provide a practical rating system.

The Zacks Rank extends from #1 (Strong Buy) to #5 (Strong Sell). It has a proven track record of outstanding performance, with #1-ranked stocks delivering an average annual return of +25% since 1988. In the past 30 days, the Zacks Consensus EPS estimate for American Express has remained unchanged. As it stands, American Express holds a Zacks Rank of #2 (Buy).

From a valuation perspective, American Express currently trades at a Forward P/E ratio of 19.64. This is significantly higher than the industry's average Forward P/E of 9.84.

American Express's PEG ratio stands at 1.44, a metric similar to the P/E ratio but also accounts for expected earnings growth. The average PEG ratio for the industry is 1.05 as of the previous day's close.

American Express operates within the Financial - Miscellaneous Services industry, which is part of the Finance sector. This industry currently boasts a Zacks Industry Rank of 36, placing it in the top 15% of over 250 industries.

The Zacks Industry Rank assesses the relative strength of industry groups by evaluating the average Zacks Rank of their individual stocks. Historically, industries rated in the top half have outperformed those in the bottom half by a factor of two to one.

Investors are encouraged to leverage the insights and metrics available through Zacks.com to remain informed about stock developments in the coming trading days.

AmericanExpress, Earnings, Investors