Stocks Make Great Holiday Gifts: Consider These 4 for Gen Z
Written by
Sean Bryant
Edited by
Jenna Klaverweiden
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With the holidays right around the corner, it’s time to start thinking about the gifts you’re going to purchase for friends and family. For those tough-to-shop-for Gen Zers, you might need to get a little creative this year. Instead of shopping for material items or gift cards, you could purchase shares of stock.
Not only can this help them start building an investment portfolio at an early age, but you can help them support the companies they value. Here are four stocks you could purchase for a Gen Zer.
First Solar (FSLR)
A recent Morgan Stanley Sustainable Signals report found that many Gen Zers care about sustainable investing and want to make decisions that benefit the planet. Because of that, First Solar could be a great stock to purchase.
Solar stocks have had a rough couple of months because of uncertainty about what President-elect Donald Trump might do with clean energy initiatives.
“The company’s stock has been beaten down on fear that Trump will reverse the generous tax credits from the Inflation Reduction Act,” said Ulrich Ebensperger, co-founder and CEO of Ziggma. “This could be partially true. But solar is a big industry now, so many Republican states benefit from it as well. As a result, it’s unlikely that the company will have to forgo all grants. In fact, First Solar may benefit strongly from Trump’s import tariffs on cheap Chinese solar panels.”
From a fundamental standpoint, there is a lot to love about First Solar. Next year’s revenue growth is expected to be 30.25%. Given the significant pullback in First Solar’s stock price recently, analysts feel there is upside from its current price, with an average price target of $272.77.
Airbnb (ABNB)
With travel having a significant rebound after the pandemic, there are a lot of travel-related stocks that would be good additions to a portfolio. However, many younger travelers are looking for more space and want the freedom to be in an apartment or house instead of smaller hotel rooms.
“At least in Europe, Airbnb (ABNB) is close to a monopoly,” Ebensperger said. “If you want to rent an apartment, ABNB is the way to go. To me, the company has a huge MOAT. The stock is not cheap, but they are still growing quite nicely. Revenue is projected to grow in the double digits in each of the next two years.”
Revenue is expected to grow by about 11% next year. The biggest downside for Airbnb is its valuation. With a price-to-earnings (P/E) ratio of 47.74, its stock price is fairly expensive.
Chipotle (CMG) or Cava Group (CAVA)
When it comes to where Gen Z chooses to eat, the decision frequently comes down to where they will get the healthiest foods that taste great and where they will receive the best service.
Fast-casual restaurants like Chipotle and Cava check all those boxes. Plus, the companies have great fundamentals, which make their stocks great picks as well.
“We score these stocks highly thanks to their growth,” Ebensperger said. “But these stocks are expensive. It could still work as a gift because you hang on to it for a long time, thereby leaving the time for profit to catch up with the high multiple. Additionally, these restaurants are popular among Gen Zers because of their healthier food and better service.”
Cava’s revenue growth is expected to be 23.58% next year, and it has extremely strong financials. However, because the stock price is up more than 244% for the year as of early December, the current price is extremely expensive, with a P/E of 343.54.
Chipotle isn’t in quite the same growth category as Cava, but it’s still expecting 2025 revenue growth of 13.24%. However, its valuation is a lot lower, with a P/E of 56.22.
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