William Blair Highlights Long-Term Value in American Express (AXP)

American Express Company (NYSE:AXP) ranks among the best forever stocks to invest in. On July 2, William Blair reaffirmed its Outperform rating for American Express Company (NYSE:AXP), pointing to the company’s gains with younger customers as a major source of growth.

In contrast to older groups, Gen-Z and millennial customers exhibit higher levels of involvement and give American Express Company (NYSE:AXP) a greater share of their wallets. While their delinquency rates are slightly higher (2.1% compared to 1.3% for Gen-X and baby boomers), these younger cohorts also have reduced servicing costs.

According to William Blair, younger cardholders will eventually have a stronger long-term return on investment than older groups as they are more likely to maintain their American Express cards “top-of-wallet,” which leads to higher relative spending with the same credit performance.

William Blair also showed interest in American Express’s small and medium-sized business division amid recent corporate action in the financial technology industry, such as Melio’s $2.5 billion acquisition and Ramp’s $16 billion valuation.

American Express Company (NYSE:AXP) is a leading bank holding company that provides a comprehensive digital payment network, including credit cards, charge cards, and financing options.

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Disclosure: None.