1 Stock to Buy Hand Over Fist in the Tariff-Induced Market Downturn

Core Viewpoint - The current market downturn presents a valuable buying opportunity for American Express, particularly for long-term investors despite potential challenges in 2025 due to tariffs [2][11]. Company Overview - American Express is one of the largest credit card issuers in the U.S., with approximately 146.5 million cards in circulation by the end of 2024 [3]. - The company has a unique business model, with 66% of its revenue derived from credit card swipe fees and customer fees rather than net interest income [4]. Customer Base and Performance - American Express serves a wealthier customer base, with an average spending of $25,000 per card member in 2024 and write-off rates below 2$5.4 billion in 2024 [6][7]. - The reduction in shares outstanding by 21% over the past 10 years enhances shareholder value through increased ownership stakes and EPS growth [7]. Stock Valuation - The current forward price-to-earnings (P/E) ratio for American Express is 15, down from over 20 at the beginning of the year, indicating a significant discount for investors [9][10]. - Management anticipates long-term revenue growth of over 10% annually, which could lead to continued declines in the P/E ratio as the stock price stabilizes [10].