5 stocks to choose as Millennials drive investing trends
Every generation leaves a mark, and just like the baby boomers who left an impact on America’s financial markets, millennials are here to write their own stories. Millennials are expected to inherit approximately $ 24 trillion from baby boomers and older generations over the next 15 years, according to a Deloitte study. Therefore, these young investors could play a crucial role in the future of investing.
Trends in investment decision making
Millennials, the cohort of 24 to 39, grew up using the Internet and smartphones, and are more inclined to adapt to new technologies and to adapt to societal and economic changes. This trend has led millennials to choose online platforms as a more convenient way to invest in the stock market and build a portfolio based on relevant sectors and trends. Let’s see what trends millennials follow when making investment decisions.
Unlike baby boomers, millennials have a positive view of socialism and are supporters of sustainable investing. Being socially aware, they are interested in having a positive impact on the social and environmental aspects of their investments, which the population before them was not very enthusiastic about. This cohort is inclined to invest in companies focused on protecting the well-being and financial security of their employees and suppliers, even if they suffer financial losses. Additionally, millennials focus on the environmental aspects of the business and support businesses focusing on green transformation or carbon footprint reduction. According to online investment app Robinhood, a hangout for young investors, Ford Motor has consistently hit the top six holdings on the platform, after the auto giant pledged to spend $ 22 billion. in electric vehicles (EVs) and an additional $ 7 billion in autonomous vehicles. until 2025.
A Federal Reserve report shows millennials have doubled their assets to more than $ 10 trillion in 2020. However, this generation faces economic hurdles that impact their personal finances. Millennials have already gone through two recessions and have witnessed stagnant wages, layoffs amid rising cost of living that affects their ability to build wealth. This has also made this generation skeptical hence their appetite for risky investments is low. They are cautious and prefer to invest more in baskets than in a single asset.
Top 5 Stock Picks
Currently, millennials are not only earning, in many households they are the main source of income and also the largest contributor to household finances. And with billions to inherit, this generation will have a huge role to play in painting the future of global investment. Therefore, here are five stocks that may match the investment decision-making trends of millennials.
iRobot Corporation IRBT designs, manufactures and sells robots. The company which is owned by Zacks’ industrial automation and robotics business has an expected profit growth rate of over 100% for the current quarter. Zacks’ consensus estimate for that company’s earnings for the current year has been revised up 36.7% in the past 60 days. The company donates more than 12 robots per month to a wide range of organizations and institutions – the equivalent of over $ 100,000, as part of charitable support to the company. iRobot displays a rank 1 of Zacks (strong buy). You can see The full list of today’s Zacks # 1 Rank stocks here.
Microsoft Corporation MSFT develops, licenses and supports software, services, devices and solutions. The company’s expected profit growth rate for the current year is nearly 28% compared to the Zacks Computer – Software industry’s projected profit growth of 4.1%. Zacks’ consensus estimate for this company’s current year profit Zacks Rank # 2 (Buy) has been revised up 9.5% in the past 60 days. Microsoft has been carbon neutral globally since 2012 and is committed to being carbon negative by 2030.
Apple Inc. AAPL designs, manufactures and markets smartphones, personal computers, tablets, wearables and accessories. The company which belongs to the Zacks Computer – Mini-Computers segment has an expected profit growth rate of 36.6% for the current year. Zacks’ consensus estimate for current year earnings has been revised up 11.2% over the past 60 days. Apple carries a Zacks Rank # 2. All of Apple’s offices, stores and data centers in 44 countries are powered 100% by renewable sources of electricity.
NVIDIA Corporation NVDA operates as a visual computing company. The company’s expected profit growth rate for the current year is 33.7% compared to Zacks Semiconductor – General’s projected industry profit growth of 15.5%. Zacks’ consensus estimate for that company’s earnings for the current year has been revised up 15.1% over the past 60 days. Currently, the stock holds a Zacks Rank # 2. NVIDIA plans to source 65% of the world’s renewable energy by 2025 and its GPUs are 20-25 times more efficient than CPU servers for AI workloads, helping to reduce the footprint carbon.
Tivity Health, Inc. TVTY provides fitness and health products primarily to the elderly and the elderly. The company which is owned by Zacks’ medical services industry has an expected profit growth rate of over 100% for the current quarter. Zacks’ consensus estimate for current year earnings for this Zacks Rank # 2 company has been revised up 11.1% over the past 60 days.
The company is testing the cooler material used in packaging and plans to make it 92% biodegradable within four years. And at least 80% of Tivity Health’s paper shipping cartons are made from 100% recycled fibers.
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