blog

Latest from the Quantamize Blog

Stocks to own as Millenials spending grows-Barron's highlights 5 stocks

May 06, 2019

We Crunch the Numbers, You Make the Trade.We Crunch the Numbers, You Make the Trade.
We Crunch the Numbers, You Make the Trade.We Crunch the Numbers, You Make the Trade.

 

  • Millenials are about to replace baby boomers as the largest generation of shoppers in the history of the US economy, Barron's notes today
  • The oldest millenials are approaching 38, the start of the prime age for family and household formation
  • WIth incomes generally rising through the 30s and 40s, millenials are set to see growing spending over the next 10+ years
  • By 2020 millenials as a group will represent a quarter of all US retails sales, totalling $1.4 trillion in spending
  • Barron's highlights 5 stocks that is sees can benefit from increasing demand from millenials that also will not suffer from waning demand from baby boomers or Gen-Xers
  • The stocks highlighted are Home Depot, Nike, Farfetch, Lovesac and Zuora
  • Are they right?  We highlight below what are AI Quant models think...

 

Home Depot (HD) -- TOP BUY

  • Home Depot (HD) is rated a TOP BUY in our US Consumer Discretionary Global Top Stock Ideas, an excellent choice for your portfolio from the Consumer Discretionary universe
  • Home Depot is well poised to benefit from the formation of households that millenials are just starting
  • A strong economy is fueling strong remodeling activity from existing homeowners as well, with robust discretionary spending 
  • Growing buying versus renting among millenials is also beneficial for Home Depot

Nike (NKE) -- TOP BUY

  • Nike (NKE) is rated a TOP BUY in our US Consumer Discretionary Global Top Stock Ideas, another excellent choice for your portfolio from the Consumer Discretionary universe
  • Nike is benefitting from strong conusmer spending amid the strong economy
  • Nike's digital shopping experiences have been very well received by millenials, allowing for custom sneakers, for instance
  • Nike's digital experiences are designed to involve visits to stores, benefitting its retail efforts
  • Its SNKRS app has also been well received

Zuora (ZUO) -- TOP SHORT

  • Zuora (ZUO) is rated TOP SHORT in our US Information Technology Global Top Stock Ideas, an attractive SHORT for your portfolio
  • Zuora is a small sofrware company that develops cloud-based software to manage back-office functions for subscriptions services
  • Zuora's CEO recently told Barron's profitability isn’t the company’s near-term priority

Lovesac (LOVE) -- TOP SHORT

  • Lovesac (LOVE) is rated TOP SHORT in our US SMID-Cap Global Top Stock Ideas, an attractive SHORT for your portfolio
  • Lovecas is a maker of sectional sofas that are popular with young buyers
  • Lovesac has yet to turn a profit, still reinvesting profits in expansion for the coming year
  • The company seeks to benefit from the increased spending of millenials, but in a crowded field

Farfetch (FTCH)

 

Global Top Stock IdeasTOP LONG & TOP SHORT STOCK IDEAS FOR GLOBAL MARKETSMONTHLY TOP IDEAS FROM OUR MULTI-FACTOR QUANTITATIVE MODELS
Global Top Stock IdeasTOP LONG & TOP SHORT STOCK IDEAS FOR GLOBAL MARKETSMONTHLY TOP IDEAS FROM OUR MULTI-FACTOR QUANTITATIVE MODELS