The stock market has recently witnessed a significant roller coaster of volatility that has left many investors feeling uncertain about the future. After experiencing a sharp decline in previous weeks, the S&P 500 index closed up by over 10% on April 9, following a surprising announcement from the Trump administration. The announcement indicated a pause on tariffs for various countries around the globe, excluding China, for a period of 90 days. This decision marks a significant departure from the administrations stance just days earlier, igniting a brief surge of optimism across the financial markets. However, this optimism was short-lived, as the very next day, the stock market slid back down, underlining the unpredictable nature of current market conditions.

Investors are left grappling with uncertainty regarding tariff implications in the near future. While the question of what tomorrow, next week, or next month will bring remains unanswered, one thing is clear: investors can capitalize on any dips in the stock market by purchasing shares of companies on their watchlists that have temporarily lost value. In light of the recent downturn, here are two promising stocks that could be worthwhile additions to your portfolio for long-term holding.

American Express: A Staple in Premium Credit Cards

American Express (NYSE: AXP) has been a revered brand in the financial industry for decades. Known for its premium credit cards that come with significant fees and appealing travel benefits, the company has cultivated a loyal customer base that tends to remain with them for years. This loyalty has translated into steady revenue growth for the company. Unlike many of its competitors, American Express tailors its services specifically to wealthier consumers and boasts a more diversified revenue structure. Importantly, the company operates its own payment network, which means that over half of its revenue is derived from the fees collected on credit card transactions.

In recent years, American Express has demonstrated impressive growth, particularly in attracting new cardholders through targeted marketing strategies aimed at younger demographics, namely Gen Z and millennials. In 2023 and 2024, the company reported net new card acquisitions of 12.2 million and 13 million, respectively. With an average spending of close to $25,000 per cardmember last year, each new acquisition represents significant potential revenue for American Express. Given that many of these new customers are younger individuals, their spending is anticipated to grow as they age and their financial situations improve.

However, as we look ahead, a potential recession could impact American Express's earnings potential in 2025. While this is a concern for any company involved in consumer lending, American Express appears to be in a better position to weather economic downturns due to its focus on affluent customers. This demographic did not experience significant loss rates during the inflation spike of 2022, which bodes well for the company's resilience.

Additionally, American Express's management has a strong track record of increasing its dividend payouts and repurchasing shares, strategies that could bolster stock performance in the long run. Management is optimistic about future growth, projecting revenue increases of 10% annually and even faster growth in earnings per share (EPS). Should the stock price decline again, investors may find an attractive opportunity to purchase American Express shares and hold them as a long-term investment.

Visa: Dominating the Payments Landscape

Another key player in the credit card industry is Visa (NYSE: V), which operates on a different business model than American Express. Unlike American Express, which issues its own credit cards, Visa serves primarily as a payment network for banks that issue credit cards utilizing the Visa platform. This specialization has enabled Visa to become a dominant force in the global payment transaction market. By the end of the last fiscal year, Visa had an impressive 4.7 billion debit and credit cards in circulation.

As the market continues to fluctuate, investors may want to consider adding both American Express and Visa to their portfolios. Each company holds a unique position within the financial sector, and their differing approaches may provide stability and growth opportunities in the face of economic uncertainty.