Youth doesn’t just have superficial advantages but rather can leverage significant financial rewards, particularly in the realm of stocks for young investors. Of course, a high-flying asset – such as a hot cryptocurrency prior to the Covid-19 pandemic – is valuable no matter what your age. However, nobody truly knows when a big break might materialize. And that’s where investing in your 20s becomes crucial.
Generally speaking, those who are just starting their journey in the workforce should consider the best stocks for millennials (or more accurately now, Generation Z). With a beginner investing protocol, since you have time as a crucial advantage, you can absorb mistakes. That contrasts with someone near retirement age, who really has to get it right.
Perhaps the best way to explain the advantage of investing in your 20s is to use a baseball analogy. When you’re young, you’re playing in the first inning. It’s not critical if you give up a run or two. You can’t really say that in the eighth inning. So, on that note, here are stocks for young investors to get you off on a bright start.
CRISPR Therapeutics (CRSP)
With the biotechnology sector increasingly focusing not just on addressing debilitating and life-threatening conditions but also on preventing them from materializing in the first place, CRISPR Therapeutics (NASDAQ:CRSP) makes plenty of sense as one of the stocks for young investors. Fundamentally, CRISPR is compelling but also risky. Therefore, one would need plenty of patience to approach this idea.
According to its corporate profile, CRISPR is a leading gene-editing enterprise focused on developing transformative gene-based medicines for serious diseases using its proprietary CRISPR/Cas9 platform. Enticingly, CRISPR/Cas9 allows for precise, directed changes to genomic DNA. In addition, the company has established a portfolio of therapeutic programs across a broad range of disease areas including hemoglobinopathies, oncology, regenerative medicine, and rare diseases.
Another factor that makes CRSP among the best stocks for millennials is the ethical dilemma. While the debate is vigorous now, it could possibly fade out in the decades to come. Finally, analysts peg CRSP as a moderate buy with an $85.61 price target (implying over 50% upside). Thus, it’s a speculative but tempting idea for investing in your 20s.
NuScale Power (SMR)
Easily one of my favorite companies to discuss, NuScale Power (NYSE:SMR) is arguably appropriate for any patient investor. However, it’s particularly suited under the context of stocks for young investors – and that’s because of the volatility. Since the beginning of this year, SMR hemorrhaged over 33% of its equity value. In the trailing one-year period, the red ink comes out to a loss of 31.53%.
Still, the enterprise – which focuses on small modular reactors or SMRs – may shift the paradigm for nuclear energy. Moving away from large bulky structures, NuScale’s facilities feature a much smaller footprint than traditional powerplants. Because of this size advantage, SMRs can be built across more diverse regions. Plus, they command innovative safety protocols, addressing a key concern for investors.
Fundamentally, nuclear energy won’t be going away anytime soon, in large part because it’s the most reliable energy source. Combined with its unparalleled energy density, nuclear will likely stand alongside other sources of power. While no one currently covers SMR, TD Cowen’s Marc Bianchi gave SMR a blue-sky price target of $14.50, implying 112% upside.
Arqit Quantum (ARQQ)
While beginner investing can be tough due to a lack of funds, young market participants might be able to make their dollars stretch far and wide with Arqit Quantum (NASDAQ:ARQQ). According to its corporate profile, Arqit is a cybersecurity company that creates unbreakable software encryption keys that are easy to use and has universal application to every edge device and cloud machine.
In addition, it levers a unique quantum encryption technology that makes the communications links of any networked device secure against cyberattacks. Unfortunately, Wall Street doesn’t seem to care about the prospects for ARQQ, sending it down 58% since the Jan. opener. With such volatility, Arqit might not be appropriate for conservative buyers. However, it might make sense as one of the stocks for young investors.
Per Cybercrime Magazine, the underlying nefarious activity may cost the world $10.5 trillion annually by 2025. That’s not that far away. Further, advancing tech will only make cybercrimes more difficult to address. Thus, ARQQ is one of the best stocks for millennials in terms of relevancy. On a final note, analysts on average see ARQQ hitting $3.75 per share, implying nearly 198% upside.
On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.