Based on my experience, I believe that young people often are early adopters of products and companies that end up being wildly successful. Two of the best examples of millennial stocks skyrocketing thanks to attention from the younger generations are Apple (NASDAQ:AAPL) and Tesla (NASDAQ:TSLA). Apple became one of the most successful stories in the history of American capitalism. Similarly, in February 2018, a Business Insider headline read “Tesla’s Model 3 is the millennial dream car.” And TSLA stock, of course, soared between February 2018 and December 2021. Given this history, I think that it’s smart for investors to consider buying shares of companies that resonate with young consumers. Here are three millennial stocks that could also deliver huge profits over the longer term.
Netflix (NFLX)
In 2023, 34% of Generation Z and 41% of millennials reported that they watched Netflix (NASDAQ:NFLX) no less than once daily. Netflix’s popularity among young American’s makes NFLX one of the best millennial stocks.
Meanwhile, Jason Snipe, the founder and CIO of Odyssey Capital Advisors, anticipates that Netflix’s decision to stream WWE matches and an upcoming Mike Tyson fight will boost NFLX stock. Moreover, Snipe is upbeat on the firm’s profitability focus and strong content.
Costco (COST)
Costco (NASDAQ:COST) is actually rather popular among younger Americans. A recent survey reported that 15% of Americans, age 18 to 24, and 17% of Americans, age 25 to 34, do most of their grocery shopping at Costco. Those are high percentages, given the huge number of choices that Americans have when it comes to grocery shopping.
Additionally, Jason Snipe called Costco “the best big box retailer” in the U.S. on CNBC.
Costco recently reported that its comparable sales, excluding certain items, had jumped a robust 5.8% in the previous quarter versus the same period a year earlier. Meanwhile, its earnings per share had advanced to $3.93 compared with $3.30 in the same period a year earlier.
Dutch Bros (BROS)
Coffee chain Dutch Bros (NYSE:BROS) received a top score from 62.7% of Gen Z patrons, giving it the top ranking in the “quick-service restaurants” category among members of that group. That ranking certainly makes it one of the top Gen-Z stocks to buy at this point.
Moreover, last quarter, Dutch Bros’ sales jumped 26% versus the same period a year earlier to an impressive $254 million. Additionally, its EBITDA, excluding certain items, increased 16% year-over-year to a robust $34.6 million.
Dutch Bros expects to generate adjusted EBITDA of $185 million to $195 million this year. Two investment banks —Wedbush and Stifel — believe that the latter guidance is conservative.
Wedbush retained an “outperform” rating on the shares and kept the name on its “Best Ideas list.” Simultaneously, Stifel noted that Dutch Bros’ traffic rose in Q4 versus Q3 due to specific measures that it took.
Noting that the chain intends to keep using those techniques this year, Stifel increased its price target on BROS to $40 while maintaining a “buy rating” on the shares.
On the date of publication, Larry Ramer did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.