Gen Z consists of individuals born between 1997 and 2012. Many articles have depicted this group’s potential to pursue new trends and lifestyles, similar to how many articles have emerged about Generation Alpha.

However, many people in Gen Z are reaching the point where they can spend their own money. The youngest people in this cohort are 12 years old, and as they age, they will have an outsized impact on the economy. 

It’s similar to how millennials have risen to prominence. That age cohort is filled with people who are 28-43 years old. Most people in this cohort have jobs, while Gen Z is creeping up to that stage. 

As members of Gen Z make more money, they will use it to buy products and services that align with their interests and values. These seven stocks are already benefitting from the Gen Z goldmine.

Lululemon (LULU)

Lululemon (NASDAQ:LULU) is an athletic apparel retailer with 686 stores. The company’s products have been a big hit among Gen Z, especially in international markets.

Revenue increased by 19% year-over-year in the third quarter to $2.2 billion. International sales growth reached 49% year-over-year and can drive elevated revenue growth for several years.

LULU stock has gained 54% over the past year and is up 219% over the past five years. High spending from Gen Z can keep this going, and Lululemon has also been winning support from other generations. 

Lululemon continues to gain market share in the industry and trades at a 34-forward P/E ratio. The company has a market cap of just above $60 billion. Calvin McDonald, CEO of Lululemon, shared sentiments in the Q3 press release that indicate more gains are on the horizon.

“As we enter the holiday season, we are pleased with our early performance and are well-positioned to deliver for our guests in the fourth quarter,” he stated.

Nintendo (NTDOY)

Nintendo (OTCMKTS:NTDOY) is a video game and entertainment juggernaut that has become a nostalgic brand for many consumers. Rumors about a Nintendo Switch 2 coming out in 2024 can drum up more sales for the company, especially if it’s as successful as the original Nintendo Switch.

The company has produced many recognizable brands such as Super Mario Bros, Pokemon, The Legend of Zelda, and many others. Nintendo also has many large brands under its umbrella that aren’t as relevant in pop culture but still generate profits for the company.

While investors should get excited about the prospects of a new Nintendo Switch, I am more excited about a larger presence in movie theaters. The Super Mario Bros Movie exceeded $1 billion in revenue, and a sequel is in the works.

Nintendo has a treasure trove of content where they can simply retell the stories and profit considerably for their shareholders. The declining quality of Marvel movies has left a void that Nintendo can pounce on.

With excitement building for the upcoming Legend of Zelda movie, it’s easy to see the company cover more ground. If the company wants to go in that direction, Nintendo even has a path to bring the characters together in a cinematic universe via a Super Smash Bros movie. It’s exciting to think of the movies Nintendo can produce as an investor and a fan.

Elf Beauty (ELF)

Elf Beauty (NYSE:ELF) offers beauty and cosmetics products that tap into Gen Z’s social consciousness. The company does not use ingredients involved with animal cruelty. While other beauty products have these questionable ingredients, Gen Z gets to look and feel good without worrying as much about how the beauty products get made.

The stock is small and growing fast. The company’s market cap is at roughly $8.75 billion, thanks to a strong rally over the past five years. Shares are up by approximately 1,800% during that stretch. Elf Beauty didn’t slow down and gained 218% over the past year. 

The company’s exceptional financials can support the significant gains and the stock’s 50-forward P/E ratio. The company achieved 76.1% year-over-year revenue growth while exceeding analysts’ expectations.

Elf Beauty is already off to a strong start in 2024. While the S&P 500 and Nasdaq 100 have traded sideways to start the year, Elf Beauty has gained 12% year-to-date. The company has a good chance of continuing its trend of beating the market.

Alphabet (GOOG, GOOGL)

Some companies stick around for multiple generations, and Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) is no exception to that rule. People will always need search engines, and companies will always run advertisements to get in front of more people.

Google has become the search engine of choice for many people to the point where people use “Google” as a verb. Similarly, YouTube has become the go-to platform for people who want to watch videos. The company was beloved as a member of FAANG and has remained a fan-favorite as part of the Magnificent Seven.

Alphabet has also expanded into cloud computing, which has proven fruitful for the company. Google Cloud revenue reached $8.4 billion in the third quarter of fiscal 2023. Consumers and businesses need cloud computing to keep their information safe and increase efficiency.

Alphabet will continue to thrive as Gen Z gets older. With so much capital coming its way every quarter, Alphabet can reinvest into its “Other Bets,” which can generate more growth in the future.

Amazon (AMZN)

Amazon (NASDAQ:AMZN) also has cloud computing through Amazon Web Services. It’s a useful resource for consumers and businesses, but the company has several components that Gen Z loves. 

Amazon makes shopping online easier than leaving your home to buy a product. Gen Z loves convenience, and Amazon delivers on that front. The company also offers streaming and releases numerous movies each year. While streaming isn’t the core component of Amazon’s business, it gives Gen Z another reason to stay loyal to the brand.

Amazon also owns Twitch, a popular video game streaming platform. Younger generations enjoy playing video games and often go to Twitch to see eSports players, casual gamers, and everyone in between.

The tech giant has several business segments wrapped into one enterprise that attract Gen Z and give that generation several reasons to stick around. Just like Alphabet, Amazon is positioned to serve multiple generations and remain in business for well over 100 years.

Chipotle (CMG)

Chipotle (NYSE:CMG) is a high-growth fast food restaurant that offers healthier food than many other fast food restaurants. While companies like McDonald’s (NYSE:MCD) offer cheap, unhealthy food, Chipotle offers healthier foods relative to its competition.

Gen Z tends to be more health-conscious than previous generations, which bodes well for Chipotle. While healthier foods are available, especially if you cook your own food, Chipotle offers the convenience of a fast food restaurant without the type of guilt that comes from eating at an unhealthy fast food restaurant. 

Investors noticed and have continued to bid up the stock price over several years. The company’s long-term returns are spicier than its food. Shares have gained 344% over the past five years and are up by 50% over the past year.

Chipotle continues gaining market share, which should expand as Gen Z ages. The company reported 11.3% year-over-year revenue growth in the third quarter of 2023 and opened 62 new restaurants. 54 of those restaurants have a Chipotlane, a new option that has performed well for the company. 

Palo Alto Networks (PANW)

While the first six companies are recognizable brands for Gen Z, not as many people know about Palo Alto Networks (NASDAQ:PANW), the cybersecurity leader operates behind the scenes to keep people’s information safe from hackers.

Most of Gen Z has online accounts on various websites. Each of those online accounts is a vulnerability point a hacker can use to access sensitive information. Small businesses and large corporations invest in cybersecurity to keep their customers safe. 

Companies like Palo Alto Networks benefit as more people go online. New people joining the web and creating accounts on different platforms means more data to protect. 

This opportunity hasn’t been a secret for investors. PANW stock has gained 377% over the past five years and is up 136% over the past year. The company is up 10% year-to-date, while most indices have been flat to start the year.

The company’s financials give investors more reasons to feel confident. The company reported 20% year-over-year revenue growth to start fiscal 2024, and a high order backlog suggests the growth will continue. Palo Alto Networks is a profitable company that experienced an 871% year-over-year growth in net income in the most recent quarter.

On this date of publication, Marc Guberti held a long position in ELF. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.