Generation Z include those born during the late 1990s and early 2000s, according to Britannica. The specific range of 1997 to 2012 is used by some sources, which would make members of this cohort currently between 13 and 28 years old.
And because a good chunk of them are starting their careers and making some money, that means they can participate in the economy in rather unique ways. NielsonIQ said that Gen Z is influencing the retail landscape by being digitally native, socially conscious and valuing authenticity.
With that knowledge in mind, is it smart to start investing in their favorite brands for long-term value?
Sam’s Club is a division of Walmart (WMT). Walmart has had good performance historically, according to Yahoo! Finance. It has returned 17.45% year to date, compared with the S&P 500’s return of 12.26%. It has also beaten the index in 1-year (20.32% versus 11.00%), 3-year (117.20% versus 67.17%) and 5-year (15.45% versus 85.61%) returns.
Analysts like Walmart, with 40 of 42 analysts rating it a buy (31) or a strong buy (9) in November. One analyst rated it a hold, and one suggested it’s time to sell.
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Target Corporation (TGT) had been popular with Gen Z until January, when they announced it was rolling back its diversity, equity and inclusion (DEI) programs. Customers of all ages stopped shopping there, and the stock has fallen 35.18% year to date. It’s also negative for 1-year (-24.76%), 3-year (-38.46%), and 5-year (-41.58%) returns.
For the most part, analysts like Target but they don’t love it. Of the 37 analysts that recently made their recommendations, most of them (22) recommended holding it. Seven rated it a buy, and the rest were pretty evenly split between, strong buy, sell and underperform.
According to Vogue Business, GenZ is shopping online a lot. Many purchases are researched and made through social media sites, and smaller companies capitalize on the exposure that the popular platforms provide for low or no cost. A report by DHL found that, in 2024, 37% of online shoppers bought from Facebook, 28% from Instagram and 18% from TikTok.
While you can’t invest in the stocks of most of these small companies, you can invest in the platforms that make them successful.
Instagram and Facebook are both part of Meta Platforms, Inc. (META), one of the so-called “Magnificent 7” technology stocks (Alphabet, Amazon, Apple, Microsoft, Nvidia and Tesla are the others). While Meta has been positive in the short term, it has not kept pace with the S&P 500 in terms of year-to-date (1.73%) or 1-year (5.87%) returns. It’s 3-year (444.25%) and 5-year (121.7%) returns have been exemplary, however.
