Millennials own the same S&P 500 big-cap stocks as everybody else, such as Apple (AAPL) and Tesla (TSLA). Their biggest winning stock, however, is much less obvious.
Marathon Digital Holdings, a Florida company that mines for digital assets has seen a 192% increase in value this year. According to an Investor's Business Daily report based on data from S&P Global Market Intelligence, and a recently released report by Apex Fintech Solutions, this makes Marathon Digital Holdings (MARA) the best performing stock among millennials' top 100 stocks.
It is notable to see such a huge winner outside of the megacap techs. The S&P 500 is driven by just seven stocks, which everyone owns. This includes chipmaker Nvidia. To get ahead of the game, you need to look for stocks that are not on the mainstream.
The market could face a difficult task in clearing the hurdles in the near term, particularly without wider participation, if the overbought conditions persist in the megacap and technology sectors, which have been the main drivers of the recent market rally.
The Millennials' biggest winning stocks
Discuss a stock that you wish you had owned.
The latest available data shows that Marathon Digital was not the largest holding of most millennials at the end of March. The stock is ranked No. Apex Fintech Solution's analysis of 6,9 million brokerage account data shows that the stock ranks 82.
But Marathon Digital is a huge winner, and it separates the millennials from older generation.
Marathon digital shares are up more this year than Nvidia. Nvidia was, for many, the clear winner of this year. It is the 7th largest holding in the S&P 500. It's the No. Apex claims that it's a top five holding for each of the four generations currently in existence: Gen Zs, Millennials, Gen Xs and Baby Boomers. Thanks to the AI boom the stock is only the second-best performing stock for millennials.
Marathon is different. The older generations, Gen X and boomers, don't even make the top 100. The Millennials are eager to get in before the expected profitability of the company. This year, the company is expected to make $35.3 million or 22 cents per share. Analysts predict that the company will earn another $83million in profit next year or 51cents per share.
S&P 500 Stocks: Other Generational Trends
The top seven stocks that all generations prefer are very similar.
Apex reports that Tesla, Apple (including Apple), Amazon.com (AMZN), Microsoft, Nvidia (including Nvidia), Alphabet, Alphabet, and Facebook parent Meta Platforms are the top four holdings of current generations. These are also the stocks that have dominated the S&P 500 gains in this year.
In several ways, millennials are different from the rest. One example is that millennials invested in bank stocks, despite the turmoil of the first quarter. Charles Schwab (SCHW) became their number one holding. The shares dropped by more than a quarter in value during the first three months of the year, but despite this they are now ranked 66 (up from 87th). The millennials have also invested in shares of First Republic Bank (FRCB), despite the fact that the stock has lost most of its value over the first quarter of the year.
Millennials, like Gen Z are still hopeful about crypto currency. Gen Z is only other generation than millennials that has Marathon Digital listed in their top 100 stocks. Also, they've added cybersecurity company CrowdStrike and crypto company Coinbase. COIN has gained 80% in the past year.
"Gen Z investors are in elementary school at the time of Lehman Brothers' crash in 2008, so, in many ways, this (first quarter) bank crisis is really their first real financial crisis," says Connor Coughlin. Chief Commercial Officer for Fintech Solutions, Apex Fintech Solutions.
The Best Stocks for Millennials
Royal Caribbean Cruises - 68.4 Consumer discretionary
Sources: Apex Fintech Solutions S&P Global Market Intelligence IBD