American Express stays strong with premium card growth and solid credit quality, keeping Buy rating intact.

American Express maintains a Buy rating due to continued growth in premium card adoption, with 70% of new accounts on annual-fee products and consistent double-digit growth in card fee revenue for 32 quarters. The customer base is becoming younger, driven by Millennials and Gen Z making up 65% of new U.S. consumer accounts, which supports future growth. Despite a high forward price-to-earnings ratio of 18.4x, the company’s strong return on equity around 30%, disciplined credit management, and reinvestment in growth initiatives justify its valuation. These factors reinforce confidence in American Express's long-term prospects.