Gone are the days when millennials were dependent on parents and unlikely to have surplus cash to invest in the stock market. This demography is currently the most diverse and educated generation of the United States and their stock purchase behavior has considerable impact on the market. Their attention and involvement are expected to increase in the years to come.
Gen Y as Investors
When it comes to investment, millennials do exhibit some specific characteristics. With age on their side, they have a long-time horizon for investment. This allows them to take risks and focus more on capital appreciation rather than dividend income. They prefer to invest in stocks that have upside potential.
Their growing financial ability coupled with spending habits, penchant for technology and prudent investment decisions are expected to become a driving force for the country’s economy.
Technology, Restaurant Their Preference
Millennials have a tendency to turn to sectors that they are familiar with and companies whose products or services are part and parcel of their lives. Probably that’s why their preferred sectors include technology and restaurant.
Millennials have witnessed changing technological trends and are considered the first generation of the digital population. They are always on the lookout for latest electronic and digital gadgets, smart home appliances, Android phones, laptops and digicams to name a few. Technology stocks are among their favorites not only because these match their selection criteria but also because of their awareness about the space.
The restaurant space holds much interest for them as well. While they take recourse to fast food joints and takeaways on busy weekdays, the weekends are about dining out with family and friends. This trend has been motivating food chains like McDonald’s, Darden and Papa John’s to ramp up their efforts to meet the demands of millennials.
4 Strong Picks
With the help of the Zacks Stock Screener, we have zeroed in on four promising Buy-rated stocksthat have solid long-term expected earnings per share growth rate.
Multiplatform media and marketplace services provider XO Group Inc. sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
The company expects long-term (three to five years) earnings per share growth of 15%. Earnings are expected to register a respective 61.5% and 19.6% growth in 2018 and 2019. The company has had a massive run on the bourse over the past year. It has returned a whopping 93.7% compared with 15.3% growth of the industry it belongs to.
E-commerce services provider Etsy, Inc. (ETSY - Free Report) also sports a Zacks Rank #1. The company has an expected long-term earnings per share growth rate of 12.5%. Moreover, its earnings are expected to register 31.6% and 31.4% growth, respectively, in 2018 and 2019. Shares of the company have gained a huge 187.1% over the past year, significantly outperforming the 6.8% rally of the industry it belongs to.
Restaurant franchisor and operator Wingstop Inc. (WING - Free Report) has a Zacks Rank #1. The company has an expected long-term earnings per share growth rate of 19.5%. Its earnings in 2018 and 2019 are expected to improve 13.5% and 20.2%, respectively. The stock has gained a massive 73.8% compared with the industry’s gain of just 1.5%.
Take 'N' Bake pizza chain operator and franchisor Papa Murphy's Holdings, Inc. also carries a Zacks Rank #1. The company has an expected long-term earnings per share growth rate of 11%. Its earnings in 2018 and 2019 are expected to improve 153.3% and 23.7%, respectively. The stock has gained 19.5% in the past year, significantly outperforming the 1.6% rally of the industry it belongs to.
5 Medical Stocks to Buy Now
Zacks names 5 companies poised to ride a medical breakthrough that is targeting cures for leukemia, AIDS, muscular dystrophy, hemophilia, and other conditions.
New products in this field are already generating substantial revenue and even more wondrous treatments are in the pipeline. Early investors could realize exceptional profits.
Click here to see the 5 stocks >>