6 Stocks That Gen Z Should Invest In

Let’s get the disclaimer out of the way right up front — there is no portfolio of stocks that is the right match for every single person that’s a member of Generation Z. This is because every person has their own individual financial goals and tolerance for risk. However, there are a number of stocks that do tend to appeal to younger generations, such as Gen Z, based on the world in which they grew up.

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Unlike most older generations, Gen Zers, who are generally regarded as being between 12 and 27 years old, grew up in an era in which technology was a part of everyday living and convenience was prioritized. As such, there’s a general tendency of Gen Zers to invest in these types of stocks.

Of course, not all technology stocks are worthy of investment, nor are companies that simply provide convenience. Even the hippest-sounding business needs a path to consistently growing sales and earnings if its stock is to be a good long-term investment. Here are a few that might make the cut.

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Dutch Bros (BROS)

• Price as of July 3, 2024: $41.52
• YTD return: 31.83%

A few decades ago, Starbucks was the hot coffee chain, revolutionizing the industry and spawning numerous competitors. But while growth at Starbucks has since stalled, Dutch Bros remains an up-and-coming chain that’s popular with Gen Zers and has plenty of room to expand. In its Q1 2024 earnings release, for example, Dutch Bros reported a 39% year-over-year increase in revenue.

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PayPal Holdings (PYPL)

• Price as of July 3, 2024: $59.64
• YTD return: -2.86%

Unlike many of the other stocks on this list, PayPal has fallen on hard times in recent years, with its stock cratering 80% over the past three years. But for long-term investors — like Gen Z — this could be an opportunity.

Analysts are back onboard with PayPal, as the company has made profitable growth its top priority, predicting a one-year stock gain of about 19% and a potential multi-year run ahead. In addition to its namesake payment services company, PayPal also owns Venmo, Xoom, Hyperwallet and numerous other companies as it seeks to dominate the technologically advanced industry .

Apple (AAPL)

• Price as of July 3, 2024: $221.55
• YTD return: 16.9%

Apple may be an “old-school” technology stock, but its products, especially the iPhone, make it the company of choice among younger generations, especially Gen Z. The company battles with Microsoft for the title of “largest company in the world,” and its stock generally leads the overall market up or down.

While its growth rate has slowed as it has achieved a market cap in excess of $3 trillion, it’s still the type of innovative company that will likely appeal to both consumers and Gen Z investors for years to come.

Sweetgreen (SG)

• Price as of July 3, 2024: $28.39
• YTD return: 143.27%

Have you ever been disappointed that there’s no such thing as healthy fast food? While social pressure has forced some of the big burger chains to add token salads to their menus, Sweetgreen has been at the forefront of a movement to bring quick, healthy, salad-based meals to the world. Started by three college students who were “simply looking for a healthier way to eat,” Sweetgreen provides the type of sustainable, healthy option that resonates with many Gen Zers.

The stock has already skyrocketed in 2024, but analysts still see further gains ahead.

Lemonade (LMND)

• Price as of July 3, 2024: $16.20
• YTD return: 0.99%

Lemonade is one of the more aggressive/speculative entries on this list, but if the technology-based insurance company executes its vision, it could revolutionize its industry. Lemonade offers renters, homeowners, car, pet and life insurance, and it operates in a different manner than most insurance companies.

Via its app, the company relies on telematics to get real-world data about where and how its members drive, thereby allowing it to price its policies fairly. If it collects too much in premiums in any given year, it donates that money to charities of its users’ choice. The bottom line is that Lemonade uses technology to keep prices low, along with an environmental and charitable bent that appeals to many Gen Z users.

The Technology Select Sector SPDR Fund (XLK)

• Price as of July 3, 2024: $232.17
• YTD return: 21.2%

While not an individual stock, the Technology Select SPDR Fund is an extremely low-cost way to play one of the most explosive sectors in the market today.

This ETF trades on the stock exchange but provides access to 67 tech stocks across a variety of innovative industries, such as internet software and services companies, IT consulting services and computers and peripherals. This includes names that are well-known among Gen Zers, such as Microsoft, Nvidia and Apple. In fact, those three names alone currently comprise nearly half of the ETF’s entire portfolio.

This article originally appeared on GOBankingRates.com : 6 Stocks That Gen Z Should Invest In