Investors have applauded the success of American Express (NYSE: AXP). Over the past five years, the premium credit card company’s stock has produced a total return of 124% (as of March 10), driven by consistent financial gains. However, the market has plunged the share price by 18% this year alone.
Fears could arise about the negative impact artificial intelligence will have on the labor market and consumer spending behavior. the latest investigation by The Motley Fool highlights how professions that handle repetitive tasks are at risk of becoming automated over the next decade.
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However, concerns about American Express seem overblown at this point. The best investors consider opportunities not based on the latest news but with a long-term mindset. Does this stock have what it takes to be a millionaire maker?
American Express performed well in 2025. Revenue (net of interest expense) increased 10% year over year to $72.2 billion. This growth occurred at a time when the economy is in a state of increased uncertainty. Payment volume increased 7% to $1.7 trillion, demonstrating the scale American Express has achieved.
Younger consumers are flocking to the company’s offerings. “As of the fourth quarter, millennial and Gen Z customers now account for the majority of U.S. consumer spending and remain the fastest growing groups,” Chief Financial Officer Christophe Le Caillec said in the Fourth Quarter 2025 Results Call.
This is certainly an encouraging trend that we should pay attention to. When it comes to winning over this valuable group, American Express is competing effectively not only against its traditional peers but also with more nimble financial technology companies. Younger consumers naturally have a longer lifetime value, so starting that relationship early is important for business.
The company posted diluted earnings per share of 10% in 2025. And in the long term, the leadership team is targeting a growth rate of between 10 and 10 years. American Express will lean on its strong brand presence and ability to increase payment volume, number of active cards and card fees to drive continued success.
It is clear that American Express is a high quality company. That should put him on your radar as a potential addition to the portfolio.
Even better is the current market supply, which makes now a potentially valuable time to buy shares. The stock is trading with a forward price-to-earnings ratio of 17.5. I don’t see this as an obvious negotiation opportunity. However, if you’ve been waiting on the sidelines for a compelling entry point, now is your chance to make a move.