S&P 500: Millennials’ top stock is up 192% — and you’ve never heard of it

Millennials are stuffed with the same big-cap stocks in the S&P 500 as everyone else Tesla (TSLA) and Apple (AAPL). But her biggest winning stock is a lot more unclear.


Marathon Digital Holdings (MARA), a Florida-based digital asset miner, is up 192% this year. That makes it the best-performing stock among the 100 most popular stocks among millennials, according to an analysis by Investor's Business Daily using data from S&P Global Market Intelligence and a just-released report from Apex Clearing.

It's remarkable to see such a big winner outside of megacap tech companies. Just seven huge stocks that everyone already owns, including the chipmaker Nvidia (NVDA) are driving the S&P 500 almost single-handedly. So, to stay ahead of the curve, you have to look off the beaten track for winning stocks.

“While a deal in Washington could be a catalyst for a breakthrough, overbought conditions in the tech sector and mega-cap space – key drivers of this year's market rally – could make this a high hurdle for the market in the near term, especially without broader participation.” , said Adam Turnquist, chief technical strategist at LPL Financial.

Millennials' top-performing stocks

Talk about a stock you wish you owned.

Marathon Digital isn't the biggest holding in most millennials' portfolios as of March 31 – the latest data available. The stock ranks only 82nd, according to Apex Clearing analysis of 6.9 million brokerage accounts. Tesla is the #1 position for millennials. But Marathon Digital stock is a huge gainer that sets millennials apart from older generations.

To put this year's gain in perspective, Marathon Digital's stock is up even more than Nvidia, which many have considered the absolute winner of the year so far. Nvidia is up more than 172% this year. But Nvidia ownership doesn't separate you. It's the seventh-largest stock in the S&P 500. It's also in the top five for all four current generations, according to Apex: Gen Z, Millennials, Gen X, and Baby Boomers. The stock is spot on thanks to the AI ​​boom second-The best-performing stock in millennials' portfolios.

But that's what makes Marathon different. It's not even a top 100 position for any of the older generations: Gen X or Boomer. Millennials seem eager to get on board faster than the company's expected profitability. The company is expected to post earnings of $35.3 million, or 22 cents a share, this year. And next year, analysts expect the company to post another $83 million in earnings, or 51 cents a share.

More generational trends with S&P 500 stocks

There's a lot of overlap between the seven most popular stocks of all generations.

tesla apple Amazon.com (AMZN), Microsoft (MSFT), Nvidia, alphabet (GOOGL) and Facebook parent metaplatforms (META) are all top stocks of the four current generations, says Apex. And it's the same stocks that have dominated S&P 500 gains this year.

But in several areas, millennials have not been able to keep up with the others. On the one hand, millennial investors were banking on bank stocks despite the financial turmoil in the first quarter. They crowded in Charles Schwab (SCHW) making it its No. 66 position (from 87th) even though the shares have lost more than a third of their value in the first quarter. Millennials also jumped into stocks that were struggling Bank of the First Republic (FRCB), making it the 76th most popular stock despite losing most of its value over the first three months of the year.

But like Gen Z, Millennials still hold hope for cryptocurrencies. Gen Z is the only other generation, aside from Millennials, to hold Marathon Digital in their top 100 stocks. They also joined the crypto company Coinbase (COIN), which is up 80% so far this year, and cybersecurity companies CrowdStrike (CRWD).

“Gen Z investors were in elementary school when Lehman Brothers collapsed in 2008 – so in many ways the banking crisis (Q1) was actually the first real financial crisis of this generation,” comments Connor Coughlin, Chief Commercial Officer, Fintech at Apex Fintech Solutions .

Millennials' best stocks

The best-performing stocks this year among Millennials' 100 Favorite Stocks in Q1

Rank March 31, 2023 Pursue symbol year to date % ch. sector
82 Marathon Digital Holdings (MARA) 192.1% information technology
5 Nvidia (NVDA) 172.1 information technology
6 metaplatforms (META) 126.5 communication services
15 Palantir Technologies (PLTR) 126.5 information technology
50 DraftKings (DKNG) 114.5 Consumer Discretionary
8th modern micro devices (AMD) 84.5 information technology
43 Coinbase Global (COIN) 79.6 finance
84 Grayscale Bitcoin Trust (BTC) (GBTC) 69.5 finance
1 Tesla (TSLA) 68.5 Consumer Discretionary
85 Royal Caribbean Cruises (RCL) 68.4 Consumer Discretionary
Sources: S&P Global Market Intelligence, IBD

Follow Matt Krantz on Twitter @dull wreath


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