Millennials aren't just the new kids on the block-that older folks love to complain about-anymore. According to the U.S. Census Bureau, there are a total of 92 million Millennials, more than any other generation in U.S. history.
Furthermore, most Millennials are in their 20s or 30s now and have the most spending power of any generation. Therefore, whether you like it or not, millennials are reshaping the entire economy.
With that in mind, investors should be aware of the generation's consumer tastes and buying habits. The companies that tailor to this demographic are likely to be successful, while others will be left behind.
However, it can be difficult to figure out what companies will win with Millennials now. In the past, it has been technologically driven and dynamic companies that perfectly suit the first "digitally native" generation.
But millennials are all grown up now, and they can't spend full days on social media anymore. They have families to feed, bills to pay, and all the other adult responsibilities that people before them had to face.
The Millennial consumer clearly loves online and mobile platforms, following trends, and convenience, but now there are a new set of obligations. The most successful companies will be ones that can bridge this gap between digitalization and regular adult life.
Here are the stocks to look at for this aging millennial generation:
Wix ( WIX )
Wix.com is a cloud-based web development platform that provides solutions for individuals and businesses. The company is excellent for Millennials that are starting small businesses and entering leadership roles where they need to create websites and applications to better interact with customers, suppliers, and employees.
Shares of Wix have risen about 65% this year, and the company had an impressive recent second-quarter earnings report. An EPS result of 29 cents beat the Zacks Consensus estimate of 13 cents, and total revenues increased 41% year over year. Most impressively, Wix added 5.8 million registered users during the quarter.
The number of users, and the stock itself, will continue to grow as Millennials look for tools that boost the digital presence of their business endeavors.
GrubHub ( GRUB )
GrubHub is one of the biggest success stories in the investing world this year so far. The online and mobile food ordering company had stellar second-quarter results, including EPS that soared 92.3% on a year-over-year basis, driven by a robust increase in orders. In the last 12 months, the stock has grown by a staggering 170%.
Much of the progress can be traced back to GrubHub's ideal positioning in terms of Millennials. The generation has to get food themselves now, and they want convenience and easy accessibility. GrubHub enables millennials to get food from the same restaurants their parents went too-but without slowing down their busy lives.
GrubHub's impressive EPS growth, dominance of the digital food ordering market, and promising outlook are all a part of the reason why the company currently holds a Zacks Rank of #2 (Buy).
Yelp ( YELP )
Yelp is a website that provides information on a variety of services, like restaurants and shopping, through an online network and social platform. Millennials nearly won't try any local place before going on Yelp and looking at reviews.
However, the company's growth has been more stagnant than Wix's or GrubHub's. This may just be an issue of not having enough users, but there are also many competitive risks from other tech giants.
Despite this, Yelp still has a lot of potential due to its unique position as the millennial go-to for crowdsourced reviews. The company also recently partnered with GrubHub to integrate GrubHub's restaurant network onto the Yelp platform. Yelp can succeed if it capitalizes on its niche in the market and expands on its consumer base through strategic initiatives.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Yelp Inc. (YELP): Get Free Report Wix.com Ltd. (WIX): Free Stock Analysis Report GrubHub Inc. (GRUB): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research