The United States is experiencing a boom in millennial population or simply, the Generation Y cohort, which will be steering the economy for many years to come. Currently representing more than 30% of the U.S. workforce, millennials are projected to make up roughly 75% of the labor force by 2030, per media reports. Naturally, their spending patterns and approach matter a lot. A report from Accenture suggests that millennials’ spending in the United States will increase to $1.4 trillion annually and represent 30% of total retail sales in 2020.
Millennials, people born between 1981 and 1996, are a hot topic of discussion. From actively engaging on social media to taking interest in offbeat travel destinations and leisure activities, and from streaming online to endorsing fashionable apparels, millennials are making a mark across the sphere. Needless to say, they have the potential to enhance a brand’s reputation. With millennials as brand advocates, companies can cash in on a whole range of opportunities, in terms of product innovation and service offerings. This section of the population is more value focused, price-sensitive, digitally equipped and well-informed in terms of technologies. They are a generation who prefer making purchases online and getting deliveries at their door steps. Also, they show a clear preference for ride-hailing services over owning a car. It goes without saying that with millennials taking center stage, the consumption pattern is likely to alter. 7 Stocks to Gain From Millennials’ Spending Pattern Industries, which are likely to benefit from millennials’ spending behavior, include e-commerce platforms and online streaming services, fast food restaurants as well as health and wellness categories, housing and home goods, hotels and lodging, airlines, and smart wearables. In this context, we have picked seven stocks with a Zacks Rank #2 (Buy) that are poised to make the most of this emerging trend. You can see . the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here Groupon, Inc. ( GRPN Quick Quote GRPN - Free Report) operates online local commerce marketplaces that connect merchants to consumers by offering goods and services at a discount. The company’s bottom line for the current and next financial year is expected to improve 33.3% and 22.2%, respectively. The stock has a Value Score of B. Lyft, Inc. LYFT operates a peer-to-peer marketplace for on-demand ride-sharing in the United States and Canada. The company’s bottom line in the last two reported quarters has outperformed the Zacks Consensus Estimate by a wide margin. The stock has a Growth Score of B. MSG Networks Inc. MSGN owns and operates MSG Network and MSG+, which are regional sports and entertainment networks. The company also operates MSG GO that provides live streaming and video on demand. The company’s bottom line for the current financial year is expected to improve 12.2%. The stock has a Value Score of A. Wyndham Destinations, Inc. WYND operates as a vacation ownership and exchange company in the United States. The company’s bottom line for the current and next financial year is expected to improve 19.4% and 7.9%, respectively. The company has a trailing four-quarter positive earnings surprise of 7.2%, on average. The stock has a Value Score of A. NIKE, Inc. NKE designs, develops, markets and sells athletic footwear, apparel, equipment, and accessories. The company’s bottom line for the current and next financial year is expected to improve 19.7% and 17.6%, respectively. The company has a trailing four-quarter positive earnings surprise of 9.6%, on average. The stock has a Momentum Score of A. lululemon athletica inc. LULU designs, distributes, and retails athletic apparel and accessories. The company’s bottom line for the current and next financial year is expected to rise 26.3% and 16.8%, respectively. The company has a trailing four-quarter positive earnings surprise of 5.4%, on average. The stock has a Momentum Score of A. Beyond Meat, Inc. BYND a food company, provides plant-based meats. The stock reported positive earnings surprises in the last two reported quarters. Zacks Top 10 Stocks for 2020 In addition to the stocks discussed above, would you like to know about our 10 top tickers for the entirety of 2020? These 10 are painstakingly hand-picked from over 4,000 companies covered by the Zacks Rank. They are our primary picks to buy and hold. Start Your Access to the New Zacks Top 10 Stocks >>