Yahoo Finance

American Express recently faced a series of shareholder proposals focusing on its Diversity, Equity, and Inclusion policies and executive compensation guidelines. These internal pressures coincided with external market volatility driven by global tariffs, leading the company's share price to decline by 12% last week. The broader market, including the Dow and S&P 500, experienced steep declines amid trade tensions, with the Dow dropping over 5% and the S&P 500 falling by 6% in the same period. This market environment likely compounded the effects of investor concerns over American Express's internal governance issues, resulting in the observed price drop.

We've identified 2 warning signs for American Express that you should be aware of.

Rare earth metals are an input to most high-tech devices, military and defence systems and electric vehicles. The global race is on to secure supply of these critical minerals. Beat the pack to uncover the 19 best rare earth metal stocks of the very few that mine this essential strategic resource.

The last five years have seen American Express achieve a remarkable total shareholder return of 163.11%, which positions it favorably compared to industry peers and market averages. This surge can largely be attributed to substantial investments in product innovation and customer engagement, such as through the acquisition of Tock and Rooam and a global partnership with Formula 1. These efforts aimed to expand the customer base and enhance consumer engagement, paying dividends in both market positioning and financial return.

Moreover, American Express's collaboration with Alipay stands out as a key factor in its growing international presence, allowing card members to make seamless payments in China, thereby boosting transaction volumes globally. The company also benefited from strong earnings growth, with recent annual figures showing net income over US$10 billion. The healthier financial standing and robust market engagements have helped offset some of the pressures from macroeconomic challenges and intense competition, solidifying its market standing.

Our comprehensive valuation report raises the possibility that American Express is priced lower than what may be justified by its financials.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.