Millennials are a driving force within the global economy. Younger generations are splurging more often, which creates opportunities for companies that can win their loyalty.
Some corporations will continue to attract consumer spending from multiple generations. However, some relatively new brands are gobbling up market share from their competitors.
Knowing what millennials want can help investors generate long-term returns. While many businesses have millennial customer bases, these three Millennial stocks are enticing money magnets.
Amazon (AMZN)
It’s hard to beat the level of convenience and quality that Amazon (NASDAQ:AMZN) provides. The company has millions of product listings that can arrive at your door within a day or two. The tech giant was a big hit before Millennials, but it has staying power for multiple generations.
The company continues to grow despite having a large market share in the e-commerce industry. Revenue increased by 13% year-over-year (YoY) in Q1 2024, as sales in North America and international markets remained strong.
Amazon Web Services also performed well in the quarter and grew by 17% YoY. This cloud computing segment will continue to attract money from businesses. Some of these companies are Millennial-owned, but many of them serve Millennials. Artificial intelligence is also fueling the rising demand for cloud computing.
Analysts believe the stock can continue to march higher as it wins more consumers within the demographic. The stock is projected to gain 16% from current levels. It’s rated as a Strong Buy among 41 analysts.
Deckers Outdoor (DECK)
Millennials need to buy sneakers and clothing, and they’ll gravitate toward trendy, innovative companies. Deckers Outdoor (NYSE:DECK) fits the bill as it continues to gain market share from bigger rivals with its HOKA and UGG product lines.
Although the stock is currently in the middle of a correction, it’s still a leader. Deckers Outdoor shares are up 30% year-to-date and have surged by 503% over the past five years. Revenue in the third quarter of fiscal 2024 increased by 16% YoY to reach a record $1.56 billion. Net income growth was also solid, as profits soared by 40% YoY.
Millennials aren’t the only ones who believe in the company. Analysts are projecting an 11% upside from current levels and have rated the stock as a Moderate Buy. The highest price target of $1,110 per share implies a 29% upside from current levels. Deckers Outdoor trades at a reasonable 31 P/E ratio and has demonstrated it can improve profit margins. Net profit margins came in at 25.0% in Q3 FY24.
Celsius Holdings (CELH)
The sports beverage is capturing more market share and continues to fly off the shelves. Celsius Holdings (NASDAQ:CELH) offers a healthier alternative to other sports drinks. Millennials and Gen Z consumers are more conscious about their health and have been grabbing this drink in force.
Revenue more than doubled in full-year 2023. Sales were up 95% YoY in Q4 2023, reaching $347 million. The company also strengthened its profit margins. Celsius Holdings reported $39.1 million in Q4 2023 net income compared to a $28.2 million net loss in the same period last year.
Its stock has soared along with the drink’s success. The stock is up 45% year-to-date and has soared almost 5,000% over the past five years. CELH shares currently trade at a 69 forward P/E ratio. The beverage company’s continued expansion into international markets should create more opportunities and lead to high revenue growth for several years. This growth story is still in its early innings.
On this date of publication, Marc Guberti held long positions in AMZN, DECK, and CELH. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
