by Millennials are loaded with the same large-cap S&P 500 stocks as everyone else, like tesla (TSLA) and Litter (AAPL). But its biggest winning action is much more obscure.
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Digital participation marathon (MARA), a Florida-based company that mines digital assets, is up 192% this year. That makes it the best-performing stock among the top 100 most popular stocks for millennials, says an Investor’s Business Daily analysis of data from S&P Global Market Intelligence and a newly released report from Apex Clearing.
To see such a big winner out of megacap technicians is noteworthy. Just seven giant stocks that everyone already owns, including the chipmaker nvidia (NVDA), are almost single-handedly driving the S&P 500. So staying ahead of the pack requires looking outside the beaten path for winning stocks.
“While a deal in Washington could be a catalyst for a breakout, overbought conditions in the tech sector and the mega-cap space – the main drivers of the market’s advance this year – could make this a major hurdle for the market to overcome in the future. short term, especially without broader participation,” said Adam Turnquist, chief technical strategist at LPL Financial.
The biggest winning stocks of millennials
Talk about an action you would like to take.
Marathon Digital is not the largest holding in most millennials’ portfolios as of March 31 – the most recent data available. The stock ranks just 82nd, says Apex Clearing’s analysis of 6.9 million brokerage accounts. Tesla is the #1 position of millennials. But Marathon Digital’s stock is a giant winner and one that separates millennials from older generations.
To put its gain this year in perspective, Marathon Digital’s shares rose even more than Nvidia, which for many people has been the big winner this year so far. Nvidia is up more than 172% this year. But owning Nvidia doesn’t separate you. It’s the 7th largest holding in the S&P 500. It’s also a top five for all four current generations: Gen Z, Millennials, Gen X and baby boomers, Apex says. The stock, thanks to the AI boom, is just the second– best performing stocks in millennials’ portfolios.
But that’s what makes the Marathon different. It’s not even a top 100 spot for any of the older generations: Gen X or boomers. Millennials seem eager to leap ahead of the company’s expected profitability. The company is earning $35.3 million this year, or 22 cents a share. And next year, analysts believe the company will have an additional $83 million in profit, or $0.51 per share.
Other generational trends with S&P 500 stocks
There is a lot of overlap between the top seven stocks preferred by all generations.
Tesla, Apple, amazon.com (AMZN), Microsoft (MSFT), Nvidia, Alphabet (GOOGL) and father of Facebook Metaplatforms (META) are the top four holdings of current generations, Apex says. And those are the same stocks that dominate S&P 500 earnings this year as well.
But millennials broke away from the rest in several areas. On the one hand, millennials invested in bank stocks despite the financial turmoil in the first quarter. they piled up Charles Schwab (SCHW), making it his No. 66 holding (up from the 87th), despite the stock losing more than a third of its value in the first quarter. Millennials also jumped into fighting actions First Republic Bank (FRCB), becoming the 76th most popular stock despite losing most of its value in the first three months of the year.
But like Gen Z, millennials still have hope in cryptocurrency. Gen Z is the only generation other than millennials to keep Marathon Digital in their top 100 stocks. They also added to the crypto company Coinbase (COIN), which has gained 80% this year so far, and cybersecurity firm CrowdStrike (CRWD).
“Generation Z investors were in elementary school when Lehman Brothers failed in 2008 – so in many ways the (Q1) banking crisis was really the first true financial crisis of that generation,” comments Connor Coughlin, Chief Commercial Officer, Fintech by Apex Fintech Soluções.
Best actions of millennials
This year’s top 100 most popular stocks for millennials in Q1
| Classification March 31, 2023 | Company | Symbol | Accumulated % ch. | Sector |
|---|---|---|---|---|
| 82 | Digital participation marathon | (MARA) | 192.1% | Information Technology |
| 5 | nvidia | (NVDA) | 172.1 | Information Technology |
| 6 | Metaplatforms | (GOAL) | 126.5 | communication services |
| 15 | Palantir Technologies | (PLTR) | 126.5 | Information Technology |
| 50 | DraftKings | (DKNG) | 114.5 | discretionary consumer |
| 8 | Advanced Microdevices | (OMG) | 84.5 | Information Technology |
| 43 | coinbase global | (COIN) | 79.6 | finance |
| 84 | Shades of Gray Bitcoin Trust (BTC) | (GBTC) | 69.5 | finance |
| 1 | tesla | (TSLA) | 68.5 | discretionary consumer |
| 85 | Royal Caribbean Cruises | (RCL) | 68.4 | discretionary consumer |
Sources: S&P Global Market Intelligence, IBD
Follow Matt Krantz on Twitter @mattkrantz
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