BANK OF AMERICA: Here are 14 of the top stock picks for traders seeking exposure to millennials and Gen Zers | Markets – Business Insider

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  • Bank of America published an updated list of thematic stock picks. One of the themes is companies with high exposure to millennials and Gen Zers.
  • The report breaks down companies by their exposure to young consumers through sub-sectors ranging from social media, video games, apparel, and travel and leisure.
  • Here are the top stocks per sector that Bank of America recommends for exposure to young consumers.
  • Read more on Business Insider.

Investors looking to capture the spirit of youth need to look no further than Bank of America Merrill Lynch’s latest picks.

The bank on Tuesday published an updated list of picks for companies exposed to millennials and Gen Z. It was part of a quarterly update to BAML’s “Primer Picks” list, which saw it add 63 companies in total.

One of the lists focuses on companies popular withmMillennials – roughly between the ages of 23 to 38 – and Gen Zers – which fall between 7 and 22. These young shoppers have shown that they have a lot of clout. Companies are constantly looking for ways to appeal to them as their shifting interests have changed a bevy of industries from retail to media.

The report breaks down companies by their exposure to young consumers through sub-sectors that range from social media, video games, apparel, and travel and leisure. The report also maps opportunities and risks to “highlight a diverse range of verticals for investors wishing to access the theme,” Haim Israel, an equity strategist at BAML, wrote in the note.

Read more: A group of small tech stocks is quietly dominating the FANGs after lagging behind for years. Here’s why a Wall Street expert is convinced its gains are just getting started.

In order to be highly exposed to a certain theme, the company must have theme-related products, technologies, services, and solutions that are core to the business model, strategy, and research and development of the company, according to the report. In addition, the products must move material sales, drive growth, or be a pure play.

There are also a number of stocks that are “Primer Picks.” To be included as a Bank of America Primer Pick, the stock must have a high or medium exposure to the relevant theme. It must also be covered by a Bank of America Global Research fundamental analysts and have a “buy” rating when the quarterly update is published.

Here is the top stock, ranked by exposure and market capitalization, per millennial sub-sector:


1. Facebook

Reuters

Ticker:FB

Millennial Sub-sector: Social Media

Market Capitalization: $596 billion

Primer Pick: Yes

Exposure: High

Source: Bank of America Merrill Lynch


2. Walt Disney

Associated Press

Ticker:DIS

Millennial Sub-sector: Media & Entertainment

Market Capitalization: $218 billion

Primer Pick: Yes

Exposure: High

Source: Bank of America Merrill Lynch


3. Activision

Joe Scarnici/Getty Images for Activision

Ticker:ATVI

Millennial Sub-sector: Video Games

Market Capitalization: $42.9 billion

Primer Pick: Yes

Exposure: Medium

Source: Bank of America Merrill Lynch


4. Amazon

YouTube/Amazon News

Ticker: AMZN

Market Capitalization: $962 billion

Millennial Sub-sector: Internet/ E-Commerce

Primer Pick: Yes

Exposure: Medium

Source: Bank of America Merrill Lynch


5. Apple

Richard Drew/AP

Ticker:AAPL

Market Capitalization: $111 billion

Millennial Sub-sector: Smart Devices

Primer Pick: Yes

Source: Bank of America Merrill Lynch


6. Tapestry

Instagram/Kate Spade

Ticker:TPR

Millennial Sub-sector: Affordable Luxury

Market Capitalization: $6.9 billion

Primer Pick: Yes

Exposure: Medium

Source: Bank of America Merrill Lynch


7. Nike

Reuters / Shannon Stapleton

Ticker:NKE

Millennial Sub-sector: Sports Apparel

Market Capitalization: $15 billion

Primer Pick: No

Source: Bank of America Merrill Lynch


8. VF Corporation

Facebook/Vans

Ticker: VFC

Millennial Sub-sector: Apparel

Market Capitalization: $34 billion

Primer Pick: No

Source: Bank of America Merrill Lynch


9. Anheuser Busch InBev

Reuters

Ticker: BUDFF

Millennial Sub-sector: Beverages (Alcohol)

Market Capitalization: $18 billion

Primer Pick: Yes

Exposure: Medium

Source: Bank of America Merrill Lynch


10. Urban Outfitters

Flickr/Mike Mozart

Ticker: UO

Millennial Sub-sector: Fast Fashion

Market Capitalization: $2.62 billion

Primer Pick: Yes

Exposure: High

Source: Bank of America Merrill Lynch


11. Starbucks

Ted S. Warren/AP Images

Ticker:SBUX

Millennial Sub-sector: Food

Market Capitalization: $137 billion

Primer Pick: Yes

Exposure: Medium

Source: Bank of America Merrill Lynch


12. Booking Holdings

Shutterstock

Ticker:BKNG

Millennial Sub-sector: Travel & Leisure

Market Capitalization: $84 billion

Primer Pick: Yes

Exposure: Medium

Source: Bank of America Merrill Lynch


13. Home Depot

ALEX EDELMAN/AFP/Getty Images

Ticker:HD

Millennial Sub-sector: Home

Market Capitalization: $228 billion

Primer Pick: Yes

Exposure: Medium

Source: Bank of America Merrill Lynch


14. Paypal

Albert Gea/Reuters

Ticker:PYPL

Millennial Sub-sector: Fintech

Market Capitalization: $126 billion

Primer Pick: Yes

Exposure: High

Source: Bank of America Merrill Lynch


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