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Welcome to Episode #348 of the Zacks Market Edge Podcast.
Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life.
This week, Tracey is joined by Zacks Associate Stock Strategist, and GenZ’er, Derek Lewis, to talk about GenZ as investors.
They came of age with Robinhood already an app on their iPhones and have paid for things with PayPal and Block payment systems since they were in junior high. Are they going to buy the technology stocks they know? Are they buying stocks at all?
Recent studies are showing that GenZ is aggressively saving for retirement even though the oldest is just 25 or 26 years old. A Blackrock study showed that GenZ is saving 14% of their income for retirement, which is above that being saved by older generations of Millennials, GenX or Baby Boomers.
Could GenZ become the first truly powerhouse investing generation?
Robinhood is just another tool for GenZ investors. The company makes it easy to sign up with virtually no money at stake. But now it has rolled out IRA accounts so it’s not just for day trading anymore.
But just because GenZ is using Robinhood, that doesn’t mean they’re buying the stock.
Shares of Robinhood are down 24% over the last year as growth stocks sold off. It’s expected to lose $0.68 per share this year.
Are GenZ investors going to keep using the Robinhood app but avoid the Robinhood stock?
Studies have shown GenZ investors like buying stocks that are in the financial services industry and that includes companies like PayPal.
PayPal shares have fallen 31% over the last year but are now attractively valued. PayPal trades with a forward P/E of just 16. Earnings are expected to rise 15% in 2023 as well.
Should GenZ investors be buying PayPal after this sell-off?
GenZ is the first generation that has only known smartphones, including Apple’s iPhone, even while in grade school. Even the oldest GenZers were about 10 when the iPhone was introduced.
Is GenZ loyal to Apple as a result? Derek talks about what it’s like growing up in the world of Apple and Apple apps.
If GenZ bought Apple shares 2 years ago, they’d be up 13%, and that doesn’t include the dividends.
Will GenZ buy what they know? Derek talks about his GenZ friends using Chewy to order for their pets.
Shares of Chewy are down 59% over the last 2 years but still trade with a forward P/E of 378. Why so expensive? Chewy is expected to lose $0.03 in 2022 but make just $0.12 in 2023 but the shares are trading above $47.
Are companies like Chewy still on GenZ’s short lists?
What Else do you Need to Know About GenZ Investors?
Listen to this week’s podcast to find out.
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GenZ and the Future of Investing
Welcome to Episode #348 of the Zacks Market Edge Podcast.
Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life.
This week, Tracey is joined by Zacks Associate Stock Strategist, and GenZ’er, Derek Lewis, to talk about GenZ as investors.
They came of age with Robinhood already an app on their iPhones and have paid for things with PayPal and Block payment systems since they were in junior high. Are they going to buy the technology stocks they know? Are they buying stocks at all?
Recent studies are showing that GenZ is aggressively saving for retirement even though the oldest is just 25 or 26 years old. A Blackrock study showed that GenZ is saving 14% of their income for retirement, which is above that being saved by older generations of Millennials, GenX or Baby Boomers.
Could GenZ become the first truly powerhouse investing generation?
Is GenZ the Future of Investing?
1. Robinhood (HOOD - Free Report)
Robinhood is just another tool for GenZ investors. The company makes it easy to sign up with virtually no money at stake. But now it has rolled out IRA accounts so it’s not just for day trading anymore.
But just because GenZ is using Robinhood, that doesn’t mean they’re buying the stock.
Shares of Robinhood are down 24% over the last year as growth stocks sold off. It’s expected to lose $0.68 per share this year.
Are GenZ investors going to keep using the Robinhood app but avoid the Robinhood stock?
2. PayPal (PYPL - Free Report)
Studies have shown GenZ investors like buying stocks that are in the financial services industry and that includes companies like PayPal.
PayPal shares have fallen 31% over the last year but are now attractively valued. PayPal trades with a forward P/E of just 16. Earnings are expected to rise 15% in 2023 as well.
Should GenZ investors be buying PayPal after this sell-off?
3. Block, Inc. (SQ - Free Report)
GenZ has come of age with all of the innovations in payments like Block already in place.
Shares of Block have fallen 29% over the last year. Is it a deal? Block’s earnings are expected to fall 38% in 2022 but rebound 61% in 2023.
But Block has a sky-high forward P/E of 45.
Is Block high on the short list for GenZ investors?
4. Apple (AAPL - Free Report)
GenZ is the first generation that has only known smartphones, including Apple’s iPhone, even while in grade school. Even the oldest GenZers were about 10 when the iPhone was introduced.
Is GenZ loyal to Apple as a result? Derek talks about what it’s like growing up in the world of Apple and Apple apps.
If GenZ bought Apple shares 2 years ago, they’d be up 13%, and that doesn’t include the dividends.
Is Apple a must-own stock for GenZ investors?
5. Chewy, Inc. (CHWY - Free Report)
Will GenZ buy what they know? Derek talks about his GenZ friends using Chewy to order for their pets.
Shares of Chewy are down 59% over the last 2 years but still trade with a forward P/E of 378. Why so expensive? Chewy is expected to lose $0.03 in 2022 but make just $0.12 in 2023 but the shares are trading above $47.
Are companies like Chewy still on GenZ’s short lists?
What Else do you Need to Know About GenZ Investors?
Listen to this week’s podcast to find out.