American Express stock drops 20%, raising investment questions

The S&P 500 index fell into correction territory on March 13, dropping 10% from its highs. American Express stock has declined 20%, more than the market average, raising questions about its valuation and whether it is a good investment now. American Express reached its peak on January 23, 2025, with high price-to-sales and price-to-earnings ratios. Since then, its stock has fallen, bringing these ratios down to more reasonable levels, but they still suggest the stock is not cheap. Currently, American Express offers a dividend yield of 1.2%, which is low compared to its historical range. The stock may not attract value or dividend investors, and while growth investors might consider it, the price remains close to full value amid market uncertainty.