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Fast-Aging Global Population a Boon for These 5 Stocks

Sanghamitra Saha

The global population is aging fast. The number of persons aged 60 years or above is expected to increase from 962 million in 2017 to about 2.1 billion by 2050, according to UN. The aged population comprises 13% of the global populace and is rising at a rate of about 3% per year.

The UN report says that the number of persons aged 80 or over is projected to triple by 2050, from 137 million in 2017. BlackRock noted that “by 2050 a third of the population of 55 countries will be over 60 years old.” The average life expectancy will rise to 73 in 2025 from 65 years in 1995.

While emerging markets are younger relative to developed economies, the former are aging faster now than previous years, per Global X. “In recent decades, China saw its life expectancy rise from 67 to 75 and its fertility rate drop from 2.8 to 1.7, now below replacement levels.”

Why Is the Global Population Aging Fast?

Lower fertility rates will result in slower population growth and aging population, per un.org. Advanced medical treatment and societal changes like urbanization and rollout of social security systems to supplement old-age income also increased life expectancy.

The UN report suggests that international migration has also led to changing age structures in some countries and regions. This is because the countries that are witnessing large inflows in immigrants tend to see less overall aging population as immigrants are normally younger.

Investment Opportunities From Aging Population

Aging global population means that a considerable amount of global disposable income is governed by the senior population. The trend results in a huge long-term care market. Janus Henderson — an ETF issuer — noted that Americans with the need of severe long-term service and support will jump to 140%. So, one can expect solid investment in the broader healthcare sectors.

Against this backdrop, below we highlight a few stocks that should benefit from a fast-aging global population.

Capital Senior Living Corporation CSU

The Zacks Rank #1 (Strong Buy) is one of the largest providers of senior living services in the United States. The company currently owns interests in and operates 33 communities in 17 states with a capacity of approximately 5,000 residents. The stock comes from a top-ranked Zacks industry (top 1%) and top-ranked Zacks sector (top 19%).

Genesis Healthcare Inc. GEN

Zacks Rank #1 company provides long-term care, assisted/senior living and rehabilitation therapy. The stock hails from a top-ranked Zacks industry (top 1%) and top-ranked Zacks sector (top 19%).

Brookdale Senior Living Inc. BKD

Brookdale Senior Living Inc. is a leading owner and operator of senior living facilities throughout the United States. The stock has a Zacks Rank #2 (Buy) and comes from a top-ranked Zacks industry (top 1%) and top-ranked Zacks sector (top 19%).

The Ensign Group Inc. ENSG

The Zacks Rank #2 Ensign Group’s independent operating subsidiaries provide a broad spectrum of skilled nursing and assisted living services, physical, occupational and speech therapies, home health and hospice services, and other rehabilitative and healthcare services. It belongs to a top-ranked Zacks industry (top 1%) and top-ranked Zacks sector (top 19%).

CareTrust REIT Inc. CTRE

The Zacks Rank #2 company is a real estate investment trust. It is primarily engaged in the ownership, acquisition and leasing of healthcare-related properties. The stock comes from a top-ranked Zacks industry (top 35%).

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Brookdale Senior Living Inc. (BKD) : Free Stock Analysis Report
 
The Ensign Group, Inc. (ENSG) : Free Stock Analysis Report
 
Capital Senior Living Corporation (CSU) : Free Stock Analysis Report
 
Genesis Healthcare, Inc. (GEN) : Free Stock Analysis Report
 
CareTrust REIT, Inc. (CTRE) : Free Stock Analysis Report
 
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