Inflation-Resilient Stocks: American Express and Two Consumer Service Picks

American Express and two other consumer service stocks are attracting attention due to their resilience in the face of stubbornly high inflation. The company's solid consumer spending and uncertain Federal Reserve policy have put them under the spotlight.

The three companies highlighted - Marsh & McLennan Companies, Jack Henry & Associates, and American Express - offer exposure to essential consumer-facing services such as insurance, benefits advice, and financial technology. They also have a history of generating recurring revenue, which could be attractive in an environment of elevated discount rates.

American Express is an integrated payments and card company that earns from both consumer spending and merchant relationships. It targets a premium customer base and has seen transaction growth drive activity. However, the company relies on external funding rather than deposits and faces rising competition from banks and digital payment options.

M Marsh & McLennan Companies is a global professional services firm that helps businesses manage risk, insurance coverage, health benefits, wealth, and career issues. It has a mix of essential consumer-facing financial and risk services but also carries high debt levels and recent margin pressure.