Tags: millennials | buying | houses. stocks

Barron's: 8 Stocks Set to Soar as Millennials Finally Buy Houses

Barron's: 8 Stocks Set to Soar as Millennials Finally Buy Houses
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By    |   Friday, 11 October 2019 02:19 PM

Jefferies analyst Laurence Alexander predicts now since millennials are growing up and making more adult-type purchases, including buying houses and condominiums, there are quite a few stocks poised to surge in the near future.

Alexander writes that while investors may not want to have exposure to companies selling expensive durable items this late in the economic cycle, the category is getting a boost from younger shoppers. As low interest rates have lowered financing costs for housing, millennials are moving in, Barron’s explained.

They “are shifting into a number of big ticket categories, one reason why housing and home showed well” in a consumer survey the firm recently conducted, the analyst says. The data indicate that millennials and Gen Z are “the most likely to have bought a house/condo, and looking ahead, are the most likely to plan to purchase major furniture and a car/truck.”

Home Depot (HD), Lowe’s (LOW), and Floor & Decor Holdings (FND) appear likely to benefit from the shift. “They also stand to gain as eco-conscious younger people, who may be more willing to replace older appliances with greener models, come to account for a bigger share of the customer base,” Barron’s explained.

Other companies tied to home purchasing and improvement, such as Fortune Brands Home & Security (FBHS), PGT Innovations (PGTI), Jeld-Wen Holding (JELD), Trex Co. (TREX), and Sherwin-William s (SHW) could also get a boost, Barron’s quoyed him as saying.

However, millennials saving their money could be to blame for a sluggish economy, according to a note a Raymond James analyst wrote to clients, reports CNBC.

The U.S. personal savings rate has increased from 5.7 percent in 1996 to 8.1 percent in 2019, according to the St. Louis Federal Reserve.

The rate, according to Raymond James analyst Tavis McCourt, “has had disinflationary impact, driving the relatively slow growth and low inflation in this recovery ... causing the incentives for excess supply, and disinflation/deflation biases in the global economy.”

A slowdown in spending hurts businesses, which in turn hurts the U.S. economy.

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Jefferies analyst Laurence Alexander predicts now since millennials are growing up and making more adult-type purchases, including buying houses and condominiums, there are quite a few stocks poised to surge in the near future.
millennials, buying, houses. stocks
337
2019-19-11
Friday, 11 October 2019 02:19 PM
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