Jim Cramer explains why you should buy American Express on the dip

• CNBC's Jim Cramer on Monday told investors why he thinks it's wise to buy shares of American Express while it's down after reporting a slight revenue miss.
• The company has a promising future even though Wall Street wasn't impressed by its most recent report, he continued, remarking on its earnings strength and ability to attract younger customers.

CNBC's Jim Cramer on Monday told investors why he thinks it's wise to buy shares of American Express while it's down, saying the company has a promising future even though Wall Street wasn't impressed by its most recent earnings report.

"American Express had tremendous success at winning over lots of younger customers, who will likely stick with the company for decades to come," he said. "That's the big story here, not a line or two on the call about a softer spending environment right now, which management is handling with aplomb." 

American Express saw its stock slip last week after reporting a slight revenue miss and trimming its full-year forecast for the metric. By Monday's close, shares were down a little over 2%. But even though its top line may have seemed lacking, the bank card company posted a significant earnings beat and lifted its earnings outlook.

To Cramer, Wall Street isn't paying enough attention to American Express's earnings strength. He also praised its credit quality numbers, which he said should only improve as the Federal Reserve continues to cut interest rates.

He explained that American Express has a long-term opportunity to grow because it's able to bring in younger cardholders, and Cramer said he feels these customers have a "higher lifetime value" than older ones. The company reported progress with Millennial and Gen Z members, with CFO Christophe Le Caillec saying on the conference call, "We continued to see very strong loyalty with this younger cohort with new customer retention higher than that of older generations."

"If you believe the big story, then, like me, you know that this regularly quarterly pullback is your chance to buy American Express hand over fist," Cramer said.

"Millennial and Gen-Z consumers are a key growth engine for us, as our fastest growing consumer cohort overall in the U.S. and accounting for 60% of the new consumer account acquisitions globally," a spokesperson from the company told CNBC.

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