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

American Express (AXP) closed at $276 in the latest trading session, marking a -1.17% move from the prior day. The stock fell short of the S&P 500, which registered a loss of 1.12% for the day. At the same time, the Dow lost 0.31%, and the tech-heavy Nasdaq lost 2.04%.Shares of the credit card issuer and global payments company witnessed a loss of 4.79% over the previous month, trailing the performance of the Finance sector with its loss of 0.06% and the S&P 500's loss of 2.91%.Investors will be eagerly watching for the performance of American Express in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on April 17, 2025. The company is forecasted to report an EPS of $3.47, showcasing a 4.2% upward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $17.02 billion, reflecting a 7.69% rise from the equivalent quarter last year.Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $15.30 per share and revenue of $71.59 billion. These totals would mark changes of +14.61% and +8.55%, respectively, from last year.Investors should also note any recent changes to analyst estimates for American Express. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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, there's been a 0.15% fall in the Zacks Consensus EPS estimate. At present, American Express boasts a Zacks Rank of #3 (Hold).Looking at valuation, American Express is presently trading at a Forward P/E ratio of 18.26. This expresses a premium compared to the average Forward P/E of 9.59 of its industry.We can additionally observe that AXP currently boasts a PEG ratio of 1.34. 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. Financial - Miscellaneous Services stocks are, on average, holding a PEG ratio of 1.02 based on yesterday's closing prices.The Financial - Miscellaneous Services industry is part of the Finance sector. At present, this industry carries a Zacks Industry Rank of 31, placing it within the top 13% of over 250 industries.The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.Zacks Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report American Express Company (AXP): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks