Is your portfolio ready for “the world’s most important demographic”? This is a question that Bank of America Merrill Lynch has been considering recently. They noted that Millennials i.e. ages 19-35, are now the largest living generation in US history. And coming up fast behind is Generation Z i.e. anyone under 18.
Crucially, BAML predicts the combined income from these two age groups at a whopping $62 trillion by 2030. This is up from an estimated $21 trillion in 2015. To benefit from this explosion, BAML put together a valuable list of 17 buy-rated stocks with notably high millennial exposure. These are stocks which have millennial-focused sales and business models.
We turned to TipRanks’ powerful data analytics to pinpoint one of the most compelling stock on the firm’s list. This is a stock that the Street believes has big investing potential right now. Bear in mind this is a consensus opinion based only on the last three months of ratings.
So with this in mind, let’s take a closer look at Momo Inc (NASDAQ:MOMO).
China’s Momo, often nicknamed the “Tinder of China,” is a free social search and instant messaging mobile app. The stock is buzzing right now following stellar Q1 results and upbeat Q2 guidance. Quarterly revenue exploded 64% year over year to $435.1 million, easily beating the $396.3 million consensus estimate. For Momo CEO Yan Tang this “great start” to 2018 demonstrated “outstanding” progress on last quarter’s strategy.
“Our community continued to grow in size and engagements despite the negative seasonality, thanks to the product and marketing initiatives we have been taking in recent quarters,” Tang said. “The content ecosystem continues to improve, driving robust organic growth momentum for live streaming business.”
In response two analysts boosted their MOMO price targets and a third upgraded MOMO from Hold to Buy. UBS analyst Jerry Liu is responsible for the ratings upgrade. He also upped his price target from $41 to $60 (13% upside potential) on May 31. Liu is now more optimistic on MOMO’s Live Video initiative, which he believes is being ignored by investors. Liu sees robust potential from Live Video as users increase and monetization improves.
Net net, Momo has one of the best ratings by the Street. TipRanks reveals that the stock has a Strong Buy analyst consensus rating with 6 back-to-back buy ratings in the last three months.
Disclaimer: The author has no position or business relationship in any stock or company mentioned in this article. The author is not receiving compensation for this article. This article is intended for informational and entertainment use only, and should not be construed as professional investment advice.