7 Millennial-Favorite Stocks for Young Investors to Buy
Millennials grab headlines on a daily basis, with a focus on their hesitance to invest, massive debt loads, and changing shopping patterns. But as the often-maligned generation—known for “killing” everything from napkins to beer to home buying—gets older, many more will invest their money in the stock market.
In many cases, Millennials themselves have actually disproportionately created positive, long-lasting economic changes, making investors from older generations a lot richer. And as the generation gets older and invests more, it will likely focus on the companies that is has grown with and the brands it already loves.
With that said, let’s take a look at seven stocks that aging Millennials have strong connections to that are also set to expand their bottom-lines just as many young people begin to invest.
1. Netflix NFLX
Millennials helped propel Netflix into an international streaming TV giant. The company added 8.3 million users in Q4, marking yet another quarter of historic growth. As the cord-cutting revolution rages on, with linear TV becoming less relevant every day, Millennials will continue to account for a large amount of Netflix subscribers. Netflix is Currently a Zacks Rank #3 (Hold), but the company is expected to expand its EPS figures at an annualized rate of 26.67% over the next three to five years. This growth will be driven in large part by its commitment to new original content—much of which is geared towards Millennials.
2. Adidas ADDYY
This German sports apparel powerhouse has experienced a rapid rise over the last year, especially in the U.S. As Adidas’ footwear grows in popularity in both the athletic wear and streetwear space, the company’s cultural clout among Millennials solidifies. Propelled by the likes of Kanye West, other celebrity endorsers, and a grassroots business model, Adidas looks poised to compete with Nike (NKE) for years to come. And Millennials, who helped lift the brand’s popularity in the U.S. should be happy to note that Adidas is projected to grow its earnings per share figures at an annualized rate of 19.12% over the next three to five years. The company is also currently a Zacks Rank #3 (Hold) and sports an “A” grade for Growth in our Style Scores system.
3. Facebook FB
Built from the ground up by Millennials—who represent both the founders and the first wave of users—Facebook is expected to see its bottom line surge at an annualized rate of 26.82% over the next three to five years. Facebook is one of the most valuable companies in the world and is currently a Zacks Rank #2 (Buy). In the coming years, Millennials are unlikely to abandon Facebook, and there is a good chance they stay loyal to the company’s fast-growing photo-sharing app, Instagram. Looking ahead, Facebook could entice a new generation, as well as its core users, as it continues to invest in new technologies such as AI and augmented reality.
4. Amazon AMZN
For all of the businesses and industries that Millennials have supposedly hurt, they have without a doubt helped lift Amazon’s e-commerce business to outrageous heights. Millennials currently use the site to buy everything from clothes to electronics to groceries—which could become even more popular as Amazon further intertwines Whole Foods into its e-commerce business. On top of that, Jeff Bezos’ company, which is currently a Zacks Rank #3 (Hold), has bolstered its own original streaming television and movie offerings, as well as invested in live streaming sports. Amazon is expected to see its EPS figures grow at an annualized rate of 20.87% over the next three to five years.
5. Alphabet GOOGL
Few Millennials can image their lives without Google. From school related searches to navigating new cities, Alphabet’s ubiquitous search engine plays a huge role in young people’s lives. This isn’t likely to change anytime soon, especially when taking into consideration the company’s widely popular Gmail and all of Alphabet’s other mostly-free online tools—not to mention YouTube. Alphabet is currently a Zacks Rank #3 (Hold) and rocks an “A” grade for Growth. The company is also expected to expand its EPS figure at an annualized rate of 18.41% over the next three to five years.
6. Twitter TWTR
Today, nearly every company in the industrial world, many celebrities, and almost 100% of news outlets use Twitter to reach a largely Millennial audience. Twitter’s importance in breaking news events is only likely to expand in the years to come, especially as mobile device use grows around the world. Twitter is currently a Zacks Rank #2 (Buy) and boasts “A” grades for Growth. The company is projected to expand its bottom line at an annualized rate of 21.50% over the next three to five years.
7. Salesforce CRM
Fortune ranked Salesforce as the #4 best place for Millennials to work in 2017. The customer relationship management company employs 6,668 Millennials, who now account for 46% of the company’s total workforce. These employees will soon enter roles of greater importance at the firm that has seen its stock price soar in recent years. Salesforce is currently a Zacks Rank #3 (Hold), rocks an “A” grade for Growth, and is expected to see its EPS figures expand at an annualized rate of 25% over the next three to five years.
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Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Netflix, Inc. (NFLX) : Free Stock Analysis Report
Facebook, Inc. (FB) : Free Stock Analysis Report
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
Twitter, Inc. (TWTR) : Free Stock Analysis Report
Salesforce.com Inc (CRM) : Free Stock Analysis Report
Adidas AG (ADDYY) : Free Stock Analysis Report
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