Millennials ruin everything, right?
Wrong, according to a 2018 outlook note from Fundstrat's Thomas Lee. According to Lee, the millennial demographic is "now kicking in," and it could provide an enormous tailwind for U.S. GDP and equity valuations over the next 10 to 20 years.
Millennials are the largest generation ever at 95 million strong. While the millennial age bracket is largely considered 20 through 36, the median age for the generation today is 26.5 years old.
As the young adults of America get older, they're amassing more money to invest and are aging into buying their first cars and homes. According to Fundstrat, the age group is not even in its prime income earning phases yet.
The stocks best leveraged in the new millennial-driven market are industrials, tech ex-FANG stocks, resources (energy/materials), U.S. banks and telecom/cable. While Fundstrat identified 66 stocks that are overweight in a millennial-driven market, these are the top 20 to know.
For industrials, Fundstrat likes Caterpillar Inc. (CAT) and Raytheon Co. (RTN) as both growth and value holdings. Other top names include Illinois Tool Works Inc. (ITW) and Lockheed Martin Corp. (LMT) .
And as for telecoms and media, Comcast Corp. (CMCSA) is the best choice.
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