10 Best Stocks to Invest in for the Next 10 Years

7. American Express Company (NYSE:AXP)

Number of Hedge Fund Holders: 71

American Express Company (NYSE:AXP) operates as an integrated payments company. Gustavo Gala, an analyst from Monness, reiterated a “Buy” rating on the company’s stock. The associated price target has been kept the same at $330.00. The analyst’s rating is backed by factors highlighting American Express Company (NYSE:AXP)’s strategic position and growth prospects. Despite the stock’s rich valuation, the company is recognized as a leading network which possesses the potential for upward revisions in earnings projections as compared to its peers, says the analyst.

This potential stems from the robust earnings growth predictions. American Express Company (NYSE:AXP)’s strong balance sheet and initiatives to tap a broader customer base earlier in their financial journeys continue to support elevated valuations. The company’s success in bringing in new accounts, mainly among Millennials and Gen-Z consumers, provides a significant opportunity for future growth. These consumers are expected to fuel American Express Company (NYSE:AXP)’s growth over the next decade or so given their digital preferences, spending habits, and demand for premium experiences.

Such younger demographics provide a long-term value proposition, as they enter prime earning years and raise their spending and borrowing. Bretton Capital Management, an investment management company, released Q4 2024 investor letter. Here is what the fund said:

“American Express Company (NYSE:AXP) was our best performing stock last year, returning 60%, which was on top of 2023’s 29%. Its premium credit cards are more popular than ever, and its moderately affluent customer base continues to spend. American Express did especially well signing up younger cardholders, a great sign that its growth can be sustained for years to come. The combination of healthy revenue growth and tight expense control led to an earnings-per-share growth of 25%.”