American Express is one of Wells Fargo's top picks for a tougher recession scenario.
The firm said the payment card company has an excellent risk-reward valuation — even in the case of revenue growth being cut in half.
"Their ability to flex peak investment expense is a powerful lever," Wells Fargo said in a Wednesday client note.
"We view AXP shares as quite defensive, and it's our Top Pick.
We believe their earnings would hold up better than many expect should we head into a tougher economic environment than the mild recession we assume.
Persons:
Wells Fargo's, Wells Fargo, Donald Fandetti, Fandetti, — CNBC's Michael Bloom
Locations:
Wells