Millennials — population with birth years ranging from 1980-2000 — are slowly turning out to be the backbone of the U.S. economy, outpacing baby boomers in 2015 and reflecting over one quarter of the nation’s population. By 2019, millennials will be America’s largest population cohort, as projected by the United States Census Bureau.
This makes it important to track their life goals, shopping patterns and investment preferences for investment purposes. This is a pretty diverse generation with ages ranging from 22 to 37, thus capturing various stages of lives from “post-college to starting a family.”
While there are pure-play millennial ETFs like Global X Millennials Thematic ETF (MILN - Free Report) and Principal Millennials Index ETF (GENY - Free Report) to tap this emerging trend, investors can also play the below-mentioned equity strategies that revolve around millennials and their lifestyles. The following stocks have a Zacks Rank #1 (Strong Buy) or a 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Millennials indulge in social media. As per a report by Goldman Sachs Global Investment Research, 44% of millennials are into text messaging, 38% into both social media and instant messaging and 16% into blogging. The percentages are higher than any other generation.
Most of the millennials are occupied and that’s why shop online. They reportedly spend less time in grocery stores than baby boomers and Gen X shoppers. For obvious reasons, such preference patterns put the provider of online direct marketing and media services company QuinStreet Inc. (QNST - Free Report) , e-commerce behemoth Amazon.com Inc. (AMZN - Free Report) and Internet-based social expression and personal publishing service company Shutterfly Inc. (SFLY - Free Report) in focus.
Bet on Broader Technology
On a broader level, millennials are tech savvy. As much as 50% of millennials play video games compared with 27% Gen X and 16% Boomers. About 45% are busy chatting compared with 31% Gen X and 10% Boomers.
Apart from these, downloading music/videos and watching TV online are part of millennials’ routine. A Google study showed that 60% of millennials hold a smartphone while cooking.
Around 85% of the generation prefers artificial intelligence to manage their finances. As a result, semiconductor company Texas Instruments Inc TXN, wireless solution provider for the mobile communications BlackBerry Limited (B - Free Report) B), mobile gaming company Glu Mobile Inc. GLUU and computer storage device company Western Digital Corporation (WDC - Free Report) will catch investors’ attention.
Organic & Healthy Food Habits
Millennials are currently the driving factor behind organic produce sales. They are health conscious and aware of the importance in food standards and production methods. Such habits bode well for the wholesale distributor to the natural, organic and specialty industry United Natural Foods Inc. (UNFI - Free Report) and the provider of science-based weight management products and nutritional supplements Herbalife LTD. (HLF - Free Report) .
Experiences Important Than Goods
Millennials are viewed as a class that prefers experiences to things. About 78% likes to shell out on experiences than on possessions, per a 2017 survey conducted by the Harris Group. They shell out on dining out a lot, shows a Bankrate.com study. So, online travel company Expedia Inc. (EXPE - Free Report) , airline company SkyWest Inc. (SKYW - Free Report) and restaurant company Brinker International Inc. EAT should go well with this fondness.
Look for Value
Millennials are deemed to be value conscious. They are interested in good deals. This should benefit discount retailers like Dollar General Corp (DG - Free Report) .
Wall Street’s Next Amazon
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