American Express (AXP) closed at $323.09 in the latest trading session, marking a +2.16% move from the prior day. The stock's change was more than the S&P 500's daily gain of 1.56%. Meanwhile, the Dow gained 1.29%, and the Nasdaq, a tech-heavy index, added 2.21%.
The credit card issuer and global payments company's stock has dropped by 2.78% in the past month, falling short of the Finance sector's loss of 2.31% and the S&P 500's gain of 0.41%.
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 October 17, 2025. It is anticipated that the company will report an EPS of $3.96, marking a 13.47% rise compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $17.99 billion, showing a 8.15% escalation compared to the year-ago quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $15.26 per share and revenue of $71.41 billion, indicating changes of +14.31% and +8.28%, respectively, compared to the previous year.
Investors should also note any recent changes to analyst estimates for American Express. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.02% higher. American Express presently features a Zacks Rank of #3 (Hold).
Digging into valuation, American Express currently has a Forward P/E ratio of 20.73. This expresses a premium compared to the average Forward P/E of 11.98 of its industry.
It is also worth noting that AXP currently has a PEG ratio of 1.66. 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. As of the close of trade yesterday, the Financial - Miscellaneous Services industry held an average PEG ratio of 0.96.
The Financial - Miscellaneous Services industry is part of the Finance sector. With its current Zacks Industry Rank of 91, this industry ranks in the top 37% of all industries, numbering over 250.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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American Express Company (AXP): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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