American Express and Costco Demonstrate Resilience as Recession-Proof Stocks

American Express (AXP) and Costco (COST) have consistently outperformed the S&P 500 (^GSPC) across multiple time horizons, showcasing their resilience even in volatile markets. Both companies operate in distinct sectors—financial services and retail—yet share a common strategy: charging annual fees for premium services despite free alternatives existing.

American Express thrives on its rewards programs and cardholder perks, attracting younger demographics like millennials and Gen Z. The company reported 13 million new proprietary cards in 2024, marking 26 years of double-digit net growth in card fees, which totaled $8.45 billion.

Costco’s membership model fosters customer loyalty, differentiating it from competitors. Both stocks are positioned as defensive plays, with their fee-based revenue streams providing stability even if broader markets decline.