Top Stocks To Invest In America's Aging Workforce
Zacks Investment Research | Jan 20, 2020 07:35AM ET
America’s baby boomers — those born between 1944 and 1964 — will turn older than the retirement age of 65 by 2030-end. Percentage of Americans aged 65 and above will climb to 21% by 2030 from 15% in 2018. In fact, the number of Americans aged above 60 has already tripled since 1950.
And what about the old-age dependency ratio? The metric is expected to drop to 2.5 working-age adults to one adult of retirement age by 2060 from 3.5 working-age adults to one adult of retirement age as of now. Needless to say, such a demographic change will continue.
So, how will investors make the most of America’s ageing population? The answer is as people get older, they require more medical care. Thus, an ageing population is a boon for healthcare stocks. What’s more, Americans have already spent $3.6 trillion on healthcare in 2018, and the number is projected to increase healthcare outlays annually 5.5% through 2027, per the Centers for Medicare and Medicaid Services (CMS).
Consistent spending should provide stable earnings to healthcare companies, eventually pushing shares of healthcare companies higher. Thus, investors should keep an eye on the world’s largest medical device company, Medtronic plc (NYSE:MDT) . The company is known for making insulin pumps, surgical devices and pacemakers. And these products will remain in high demand for decades as long as America’s population ages.
Medtronic’s major business groups have registered commendable top-line growth and displayed the achievement of synergy targets in recent times. Shares of Medtronic have gained 36.3% over the past year, compared with the Zacks Investment Research
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.