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Baby boom ahead, Bank of America says. That’s good news for these stocks

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A face mask is worn by a woman shopping at Madison’s Niche in Huntington, New York, April 21st, 2021, for baby shower gifts.

Alejandra Villa Loarca | Newsday | Getty Images

Retailers could benefit from a millennial-fueled boom in baby sales, which is expected to boost overall sales. Target WalmartAnd CostcoAccording to Bank of America’s Tuesday note, the figure is.

New babies are being born at an increasing rate. Higher prices are being paid for pregnancies tests. According to company research, more couples are trying to have babies.

That could spell good news for grocers, big-box stores and warehouse clubs that sell diapers, strollers and other baby merchandise — or simply are located closer to suburban homes where new parents may settle, according to Robby Ohmes, a equity research analyst. According to Ohmes, the baby boom may begin this year. He called out the following beneficiaries: Albertsons Kroger Dollar GeneralAnd BJ’s Wholesale Club

According to the U.S. Census Bureau, millennials are now the biggest generation in America. The group — made up of roughly 72.1 million people — ranges in age from 25 to 40, according to the Pew Research Center.

The potential “millennial boom” in pregnancy test sales is one of the key indicators. Data from Nielsen and Bank of America show that sales of pregnancies tests increased an average of 13% each year between June 2020 and June 2020. The average sales growth of pregnancy test has been 13% per year since June 2020. Compare this to the average increase of 2% per year from 2016-2019.

This would result in a reversal of the decline in births that occurred during the pandemic. According to Bank of America research, live births rose 3.3% in June 2021. This is the highest rate of growth since 2013.

A monthly survey conducted by the company found 11.3% of those surveyed said that they, or their partner were expecting or planning to have a child in the next 12 months. The survey included approximately 1000 people. This survey was the largest since December 2020, when Bank of America began it.

Some retailers have already credited millennials — and their upswing in marriages, babies and home purchases — for driving more sales. Best BuyAccording to the generation, become its biggest cohort of customersThis is a. Home Improvement Retailers Home DepotAnd Lowe’s have said that generational trends — not just pandemic-induced nesting — are powering the companies’ strong sales.

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