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Every day a new article pops up about the latest thing that Millennials “killed.” The list ranges from beer and napkins, to running and marriages. This is the way life goes; previous generations typically bemoan the perceived faults of the current as they begin to transform the economics of the day and redefine societal norms.
Each generation is different. Millennials might have simply pushed some of life’s bigger responsibilities back a few years, unlike say Baby Boomers or even Generation Y. But for all the stories of ruin and doom, the stock market is chugging along at unprecedented rates and the economy is humming while new technologies transform the world.
In fact, in some cases, Millennials themselves have disproportionately created positive, long-lasting economic changes, making investors from older generations a lot richer. And as Millennials begin to age, many will begin to pump even more money into important corners of the economy, and soon enough, the negative focus will shift to the soon-to-be scrutinized Generation Z.
With that said, let’s take a look at five stocks that might benefit from the aging Millennial generation.
This multi-brand homebuilding company is set to grow in the coming years, especially as more Millennials begin to buy homes. PulteGroup is expected to expand its EPS figures at an annualized rate of 20.51% over the next three to five years. On top of the long-term earnings growth projections, the homebuilding firm currently presents outstanding value and is trading at just 11.37x earnings. PulteGroup has also been able to build a growing cash supply and has seen its stock price climb nearly 80% over the last 52-weeks. PHM is currently a Zacks Rank #1 (Strong Buy).
This upscale home furnishing power has been able to get ahead of new experiential retail trends and even expanded into the restaurant business, which helped its stock price skyrocket 216% over the last year. The company’s new operations have resonated with Millennials—who are now at the right age to be buying home goods. Restoration Hardware is currently a Zacks Rank #2 (Buy). Furthermore, the company is expected to see its bottom-line expand for years to come as its earnings per share figures are projected to expand at an annualized rate of 20% over the next three to five years.
3. Facebook
Millennials are nearly solely responsible for Facebook’s meteoritic rise to one of the most valuable companies in the world—as they were the founders and the first wave of users. Facebook is currently a Zacks Rank #2 (Buy), and the company’s 109.17% cash flow growth rate should help it further invest in new technologies such as AI and augmented reality. Millennials are unlikely to ditch Facebook’s platform in the coming years, and the company is still actively growing its user base. The social media giant is also expected to see its bottom-line surge at an annualized rate of 26.82% over the next three to five years.
For all of the businesses that Millennials have supposedly harmed, they have definitely helped lift Amazon’s e-commerce division. Amazon has been able to secure a growing cash reserve and is only set to expand its sales as the need for cloud computing and web hosting increases. Meanwhile, Millennials are using the site to buy everything, including groceries—plus, they already love Whole Foods. Looking down the road, the company is expected to see its EPS figures grow at an annualized rate of 20.87% over the next three to five years. Jeff Bezos’ company is currently a Zacks Rank #3 (Hold).
This Miami-based home construction company has seen its stock price climb 59.62% over the last 52 weeks. Some might think this is a result of short-term demand, but we’re likely just seeing that start of the Millennial home buying boom. On top of strong 2018 top- and bottom-line growth projections, Lennar’s EPS figures are expected to expand at an annualized rate of nearly13% over the next three to five years.
Zacks Top 10 Stocks for 2018
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2018?
Last year's 2017 Zacks Top 10 Stocks portfolio produced double-digit winners, including FMC Corp. and VMware which racked up stellar gains of +67.9% and +61%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
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5 Stocks to Buy for Aging Millennial Generation
Every day a new article pops up about the latest thing that Millennials “killed.” The list ranges from beer and napkins, to running and marriages. This is the way life goes; previous generations typically bemoan the perceived faults of the current as they begin to transform the economics of the day and redefine societal norms.
Each generation is different. Millennials might have simply pushed some of life’s bigger responsibilities back a few years, unlike say Baby Boomers or even Generation Y. But for all the stories of ruin and doom, the stock market is chugging along at unprecedented rates and the economy is humming while new technologies transform the world.
In fact, in some cases, Millennials themselves have disproportionately created positive, long-lasting economic changes, making investors from older generations a lot richer. And as Millennials begin to age, many will begin to pump even more money into important corners of the economy, and soon enough, the negative focus will shift to the soon-to-be scrutinized Generation Z.
With that said, let’s take a look at five stocks that might benefit from the aging Millennial generation.
1. PulteGroup, Inc. (PHM - Free Report)
This multi-brand homebuilding company is set to grow in the coming years, especially as more Millennials begin to buy homes. PulteGroup is expected to expand its EPS figures at an annualized rate of 20.51% over the next three to five years. On top of the long-term earnings growth projections, the homebuilding firm currently presents outstanding value and is trading at just 11.37x earnings. PulteGroup has also been able to build a growing cash supply and has seen its stock price climb nearly 80% over the last 52-weeks. PHM is currently a Zacks Rank #1 (Strong Buy).
2. Restoration Hardware (RH - Free Report)
This upscale home furnishing power has been able to get ahead of new experiential retail trends and even expanded into the restaurant business, which helped its stock price skyrocket 216% over the last year. The company’s new operations have resonated with Millennials—who are now at the right age to be buying home goods. Restoration Hardware is currently a Zacks Rank #2 (Buy). Furthermore, the company is expected to see its bottom-line expand for years to come as its earnings per share figures are projected to expand at an annualized rate of 20% over the next three to five years.
3. Facebook
Millennials are nearly solely responsible for Facebook’s meteoritic rise to one of the most valuable companies in the world—as they were the founders and the first wave of users. Facebook is currently a Zacks Rank #2 (Buy), and the company’s 109.17% cash flow growth rate should help it further invest in new technologies such as AI and augmented reality. Millennials are unlikely to ditch Facebook’s platform in the coming years, and the company is still actively growing its user base. The social media giant is also expected to see its bottom-line surge at an annualized rate of 26.82% over the next three to five years.
4. Amazon (AMZN - Free Report)
For all of the businesses that Millennials have supposedly harmed, they have definitely helped lift Amazon’s e-commerce division. Amazon has been able to secure a growing cash reserve and is only set to expand its sales as the need for cloud computing and web hosting increases. Meanwhile, Millennials are using the site to buy everything, including groceries—plus, they already love Whole Foods. Looking down the road, the company is expected to see its EPS figures grow at an annualized rate of 20.87% over the next three to five years. Jeff Bezos’ company is currently a Zacks Rank #3 (Hold).
5. Lennar Corporation (LEN - Free Report)
This Miami-based home construction company has seen its stock price climb 59.62% over the last 52 weeks. Some might think this is a result of short-term demand, but we’re likely just seeing that start of the Millennial home buying boom. On top of strong 2018 top- and bottom-line growth projections, Lennar’s EPS figures are expected to expand at an annualized rate of nearly13% over the next three to five years.
Zacks Top 10 Stocks for 2018
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2018?
Last year's 2017 Zacks Top 10 Stocks portfolio produced double-digit winners, including FMC Corp. and VMware which racked up stellar gains of +67.9% and +61%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
Access Zacks Top 10 Stocks for 2018 today >>