Oil prices have soared this year to levels not seen since 2022, when inflation was a major concern for the economy. It was also a troubling time for the markets as a whole, with the S&P 500 falling by more than 19% that year.
There are some types of businesses that can do well amid economic challenges, however. One company that believes it may be resilient, even amid high oil prices, is American Express (NYSE: AXP). The credit card issuer caters to an affluent customer base, and that has enabled the business to perform well over the years. And the CEO points to the company’s latest quarterly results as evidence of why it can continue to do well.
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Spending on high-ticket items remains strong
On April 23, American Express reported its first-quarter results for 2026, which showed strong growth on its top and bottom lines. Its revenue net of interest expense rose by 11% to $18.9 billion, and net income of just under $3 billion rose by 15% year over year.
CEO Stephen Squeri pointed to specific categories as good examples of its resilience, including an 18% growth rate in retail luxury and 12% higher spend on premium airline cabins. Squeri also said travel bookings were at record levels. He says that based on the data, it appears evident that Amex’s cardholders “don’t care about gas prices.”
The counterpoint to that would be that the impact of higher oil prices may be just starting to creep into the prices of everyday goods and travel, and thus, it may be a bit early to definitively say that Amex can remain resilient. There have, after all, been reports of higher-income shoppers spending more money at Walmart this year in an effort to stretch their budgets.
Can Amex be a safe growth stock to add to your portfolio?
Amex’s business may be safer than that of your average growth stock, but that doesn’t mean that its consumers will be immune to the effects of rising oil prices forever. The big test will come as the year goes on, if oil prices remain high and Amex’s growth rate continues to be strong. For now, however, I believe it’s still too early to claim that’s truly the case.
Investors don’t appear to be convinced, either, with shares of Amex falling 14% thus far in 2026. The business may face greater challenges later this year, but overall, I still think Amex is a good stock to hold on to for the long term.
