The US is already over 16% “senior”, with over 50 million seniors today.
But, as an investor, you have to think in second-derivative terms to make sense of secular trends. As the Boomers age, about 10,000 will turn 65 each day for the next 20 years – the term “Boomers” refers to the Baby Boomer generation, which represents everyone in the US born between roughly 1946 to 1965.
It is an important demographic because it represents a time of very high birth-rate in the US following the end of WWII. Basically, all the men came home to start a family during a time of great prosperity, and fecundity went through the roof.
It’s also an important demographic because – as you will note with a little quick math – these same folks are now between 56-75 yrs old. They were the biggest generation ever until the millennials came along. And they are about to start demanding geriatric healthcare and other services by the boatload.
The number of seniors forecast for the year 2030 is estimated to grow to about 72 million.
Any way you slice it, demand for senior care services is the very definition of a reliable growth market over the next decade. This has enormous implications for investors.
With that in mind, we take a look at some of the most interesting stocks in the space, including Brookdale Senior Living Inc (NYSE:BKD), Welltower Inc (NYSE:WELL), Wearable Health Solutions Inc (OTCMKTS:WHSI), and Teladoc Health Inc (NYSE:TDOC).
Brookdale Senior Living Inc (NYSE:BKD) bills itself as the nation’s premier operator of senior living communities. The Company operates independent living, assisted living, Alzheimer’s and dementia care communities, and through its comprehensive network of services, Brookdale helps to provide seniors with care and services to support their lifestyle in an environment that feels like home.
The Company’s expertise in healthcare, hospitality and real estate provides our residents with opportunities to improve wellness, pursue passions and stay connected with friends and loved ones. The Company operates and manages 695 communities in 42 states as of March 31, 2021, with the ability to serve approximately 60,000 residents and 16,000 patients. Brookdale’s stock trades on the New York Stock Exchange under the ticker symbol BKD.
Brookdale Senior Living Inc (NYSE:BKD) most recently reported today its consolidated occupancy for May 2021. According to the company, May’s month-end occupancy percentage is better than the year-end 2020 occupancy percentage. It also noted that, sequentially, the weighted average occupancy percentage increased approximately 60 basis points.
The release noted that “We expect to continue to publish monthly occupancy until we return to providing financial guidance, at which point we would expect to return to our historical reporting practices.”
Even in light of this news, BKD hasn’t really done much of anything over the past week, with shares logging no net movement over that period. Shares of the stock have powered higher over the past month, rallying roughly 17% in that time on strong overall action.
Brookdale Senior Living Inc (NYSE:BKD) managed to rope in revenues totaling $748.6M in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top line growth of -26.2%, as compared to year-ago data in comparable terms. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($465.4M against $899M, respectively).
Welltower Inc (NYSE:WELL) trumpets itself as an S&P 500 company headquartered in Toledo, Ohio, is driving the transformation of health care infrastructure. The Company invests with leading seniors housing operators, post-acute providers and health systems to fund the real estate infrastructure needed to scale innovative care delivery models and improve people’s wellness and overall health care experience.
Welltower, a real estate investment trust (REIT), owns interests in properties concentrated in major, high growth markets in the United States, Canada and the United Kingdom, consisting of seniors housing, post-acute communities and outpatient medical properties.
Welltower Inc (NYSE:WELL) recently announced that it has entered into a definitive agreement to acquire a portfolio of 86 seniors housing properties, including 80 nearly identical independent living and six combination independent living/assisted living properties, currently owned by Holiday Retirement.
Additionally, according to its release, as announced on June 21, 2021, upon the closing date of this transaction, which is expected to be in the third quarter 2021, Atria Senior Living will assume operations of the properties and retain Holiday’s in-place senior management and staff.
Even with that news, the action hasn’t really heated up in the stock, with shares moving net sideways over the past week. Shares of the stock have powered higher over the past month, rallying roughly 9% in that time on strong overall action.
Welltower Inc (NYSE:WELL) managed to rope in revenues totaling $1.1B in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top line growth of -16.4%, as compared to year-ago data in comparable terms. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($2.6B against $0).
Wearable Health Solutions Inc (OTCMKTS:WHSI) manufactures medical alarm devices (and offers related services) to summon help in the event of an emergency. The company’s products are designed and marketed primarily to the elderly, physically disabled, and individuals living alone through a large international dealer base, which makes it a perfect addition to this list.
The Company is the manufacturer of the MediPendant, the first home-based medical device that enables the user to speak and listen to the operator directly through the pendant. The Company has since launched a 2G and 3G mobile medical device called the iHelp, and is currently in development of a new product referenced as the iHelp MAX. This device is a cellular medical alert system, Bluetooth and wi-fi enabled, that operates on a 4G network. Operating capabilities commence on AT&T network (GSM-Global) with further capability on Verizon (CDMA-USA) as well.
Wearable Health Solutions Inc (OTCMKTS:WHSI) most recently announced a potential game-changing development in terms of its global product and investor exposure: it has entered into an agreement with Worldwide Business with kathy ireland (yes, that Kathy Ireland), to create impactful video pieces designed to educate the Company’s target market of dealers and distributors of Wearable Healthcare devices, and for use in promos and social media for prospects, clients, and associates, including, but not limited to Facebook, YouTube, Instagram, Twitter, and Linkedin.
According to the release, the collaboration is designed to create video marketing vehicles that will be broadcast via several social media and television platforms in order to bring awareness to WHSI’s products and services and to increase the Company’s share of the Global Medical Alert System Market. The market is estimated to be $7.4 billion in 2021 and is expected to reach $10.9 billion by 2026 with a healthy CAGR of 8.3%. With the enormous scope of reach of Ms. Ireland’s network, WHSI intends to see a large increase in dealer hardware sales and airtime recurring revenue.
The deal will give WHSI US and International television exposure including: Fox Business Network as branded content – 80 million potential US Cable Households including 20 million DirecTV subscribers, Roku (43 Million Active Accounts), Amazon Fire (40 Million Users), and Bloomberg International Television Exposure (198 million Cable Households) in Western Europe, Eastern Europe, Central Europe, Middle East/Africa, China, Hong Kong, Japan, Taiwan, Singapore, Malaysia, Mexico, Brazil, Argentina, Colombia, Venezuela, and the Caribbean,
Wearable Health Solutions Inc (OTCMKTS:WHSI) Chairman and CEO, Harrysen Mittler, said: “Our marketing plan is driven by the efforts of our dealers. The additional content we provide will result in more products and services sold by our dealer network. This new initiative will not only provide them with content, but also create leads for our dealers, domestic and internationally, offering them a qualified and interested pool of potential customers. Thereby, increasing our revenues of our dealers, and ours as well. It’s a win-win.”
Teladoc Health Inc (NYSE:TDOC) covers various clinical conditions, including non-critical, episodic care, chronic, and complicated cases like cancer and congestive heart failure, as well as offers telehealth solutions, expert medical services, behavioral health solutions, guidance and support, and platform and program services. Its platform enables patients and providers to have an integrated smart user experience through mobile, Web, and phone based accessed points.
This is one of the core plays in the space at this point given its prior commitment to the Telehealth revolution ahead of the advent of the pandemic.
Teladoc Health Inc (NYSE:TDOC) most recently announced the launch of myStrength Complete, an integrated mental health service providing personalized, targeted care to consumers in a single, comprehensive experience. The announcement comes as more than half of people with mental health concerns report that they do not know where to start when getting care, highlighting the importance of the digital front door myStrength Complete will provide.
“We are connecting the full range of mental health services from apps to clinicians so that people can access timely help, tailored to their needs and on their terms,” said David Sides, chief operating officer at Teladoc Health. “myStrength Complete meets the dual consumer needs of comprehensive mental health care and a simplified experience in one service – developed through the integration of Teladoc Health and Livongo.”
The context for this announcement is a bit of a bid, with shares acting well over the past five days, up about 8% in that timeframe.
Teladoc Health Inc (NYSE:TDOC) managed to rope in revenues totaling $453.7M in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top-line growth of 150.9%, as compared to year-ago data in comparable terms. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($722.6M against $260.4M).
