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The Zacks Analyst Blog Highlights: Microsoft, Alphabet, Johnson & Johnson, Morgan Stanley and Bank of America
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For Immediate Release
Chicago, IL – March 10, 2020 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Microsoft Corporation (MSFT - Free Report) , Alphabet Inc. (GOOGL - Free Report) , Johnson & Johnson (JNJ - Free Report) , Morgan Stanley (MS - Free Report) and Bank of America Corp. (BAC - Free Report) .
Here are highlights from Monday’s Analyst Blog:
Millennials Inclined Toward ESG: Here’s Why
Millennials are very particular when it comes to investment, and this generation generally prefers to close the gap between personal and societal well-being. This is largely reflected in their investment pattern. In fact, 90% of the millennials aim to customize investment bases on their set values, especially ESG (Environmental, Social, and Governance) factor.
Additionally, a 2018 survey indicates that 87% of high net worth millennials prefer going through the company’s ESG before investing in it. In fact, 17% of millennials prefer investing in companies with high quality ESG practices, compared to 9% of non-millennial investors. But why this inclination?
Millennials show greater integration of money and values by investing in sustainable and impactful business models. Even if we leave out environmental activists like Greta Thunberg, there are many like Bank of England’s governor Mark Carney who have from time to time underscored the risks that climate change poses to the financial system. And ESG plays a crucial role here.
Among the three components of ESG, Environmental takes into account how the company is tackling related issues. This may include lower energy consumption, greater use of renewable resources, and lower carbon footprint of their operations.
The social criteria focus on company’s treatment of employees and relationships with other businesses. Lastly, governance stands for company's accounting and investment practices.
Impact Investment a Priority for Millennials
Millennials’ inclination toward ESG investment is quite evident. iShares ESG MSCI USA Leaders ETF (SUSL) has accrued $1.79 billion and risen 7.5% since its launch in May 2019. In fact, the fund’s top holdings are Microsoft Corporation, Alphabet Inc. and Johnson & Johnson.
Millennial investors do not just want to earn a return from their investment but also want it to reflect their personal values and contribute to the social good. Microsoft has been a winner in this. The tech giant has received the top rating of AAA from index provider MSCI. And why not? Microsoft excels in privacy and data security, corporate governance, lack of corruption, and clean-tech-innovation capacity. In fact, the company aims to become carbon negative by 2030.
Per a report by Morgan Stanley, approximately 84% of millennials have started investing with focus on ESG. According to MSCI, 90% of the millennials want to increase their investment in socially responsible investments. This will drive U.S.-based ESG investments between $15 trillion to $20 trillion.
Looking Ahead
Though ESG investment has carved a niche in stock markets, millennials will be the ones driving rapid growth. In fact, Bank of America Corp. estimates that in the next 20 years, there will be $20 trillion of asset growth in ESG funds, which will be equivalent to the S&P 500’s value.
Overall, the future of ESG investment looks bright. It witnessed compounded annual growth rate of 17.4%, and increased assets under management from $8.7 trillion to $12.0 trillion in 2018.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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The Zacks Analyst Blog Highlights: Microsoft, Alphabet, Johnson & Johnson, Morgan Stanley and Bank of America
For Immediate Release
Chicago, IL – March 10, 2020 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Microsoft Corporation (MSFT - Free Report) , Alphabet Inc. (GOOGL - Free Report) , Johnson & Johnson (JNJ - Free Report) , Morgan Stanley (MS - Free Report) and Bank of America Corp. (BAC - Free Report) .
Here are highlights from Monday’s Analyst Blog:
Millennials Inclined Toward ESG: Here’s Why
Millennials are very particular when it comes to investment, and this generation generally prefers to close the gap between personal and societal well-being. This is largely reflected in their investment pattern. In fact, 90% of the millennials aim to customize investment bases on their set values, especially ESG (Environmental, Social, and Governance) factor.
Additionally, a 2018 survey indicates that 87% of high net worth millennials prefer going through the company’s ESG before investing in it. In fact, 17% of millennials prefer investing in companies with high quality ESG practices, compared to 9% of non-millennial investors. But why this inclination?
Millennials show greater integration of money and values by investing in sustainable and impactful business models. Even if we leave out environmental activists like Greta Thunberg, there are many like Bank of England’s governor Mark Carney who have from time to time underscored the risks that climate change poses to the financial system. And ESG plays a crucial role here.
Among the three components of ESG, Environmental takes into account how the company is tackling related issues. This may include lower energy consumption, greater use of renewable resources, and lower carbon footprint of their operations.
The social criteria focus on company’s treatment of employees and relationships with other businesses. Lastly, governance stands for company's accounting and investment practices.
Impact Investment a Priority for Millennials
Millennials’ inclination toward ESG investment is quite evident. iShares ESG MSCI USA Leaders ETF (SUSL) has accrued $1.79 billion and risen 7.5% since its launch in May 2019. In fact, the fund’s top holdings are Microsoft Corporation, Alphabet Inc. and Johnson & Johnson.
Millennial investors do not just want to earn a return from their investment but also want it to reflect their personal values and contribute to the social good. Microsoft has been a winner in this. The tech giant has received the top rating of AAA from index provider MSCI. And why not? Microsoft excels in privacy and data security, corporate governance, lack of corruption, and clean-tech-innovation capacity. In fact, the company aims to become carbon negative by 2030.
Per a report by Morgan Stanley, approximately 84% of millennials have started investing with focus on ESG. According to MSCI, 90% of the millennials want to increase their investment in socially responsible investments. This will drive U.S.-based ESG investments between $15 trillion to $20 trillion.
Looking Ahead
Though ESG investment has carved a niche in stock markets, millennials will be the ones driving rapid growth. In fact, Bank of America Corp. estimates that in the next 20 years, there will be $20 trillion of asset growth in ESG funds, which will be equivalent to the S&P 500’s value.
Overall, the future of ESG investment looks bright. It witnessed compounded annual growth rate of 17.4%, and increased assets under management from $8.7 trillion to $12.0 trillion in 2018.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.