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

In the latest trading session, American Express (AXP) closed at $324.19, marking a -1.81% move from the previous day. This move lagged the S&P 500's daily loss of 0.71%. On the other hand, the Dow registered a loss of 0.79%, and the technology-centric Nasdaq decreased by 1.03%.

Coming into today, shares of the credit card issuer and global payments company had lost 4.22% in the past month. In that same time, the Finance sector gained 0.84%, while the S&P 500 gained 2.72%.

Market participants will be closely following the financial results of American Express in its upcoming release. The company plans to announce its earnings on October 23, 2026. The company is predicted to post an EPS of $4.58, indicating a 10.63% growth compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $20.09 billion, up 9.05% from the prior-year quarter.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $17.68 per share and a revenue of $79.46 billion, representing changes of +14.95% and +10.02%, respectively, from the prior year.

Any recent changes to analyst estimates for American Express should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.1% higher. American Express is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that American Express has a Forward P/E ratio of 18.67 right now. This expresses a premium compared to the average Forward P/E of 11.43 of its industry.

One should further note that AXP currently holds a PEG ratio of 1.4. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Financial - Miscellaneous Services industry had an average PEG ratio of 0.91.

The Financial - Miscellaneous Services industry is part of the Finance sector. This industry, currently bearing a Zacks Industry Rank of 151, finds itself in the bottom 39% 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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