By: Michael Vodicka
“An aging global population is expected to drive huge increases in demand for healthcare products and services, presenting a big opportunities for early investors to profit from the trend.”
Human beings are living longer than ever. Due to advances in science and technology, average life expectancies have been steadily increasing for the past 100 years.
Back in 1900:
- More than 95% of all births took place in the home
- 90% of all doctors had no college education
The 5 leading causes of death were:
1.) Pneumonia and influenza
2.) Tuberculosis
3.) Diarrhea
4.) Heart Disease
5.) Stroke
In light of all these statistics, it’s no surprise that the average life expectancy has skyrocketed in the last 100 years. Back in 1900, the average life expectancy was just 47 years, but has since jumped to 73, a dramatic 55% increase in just 100 years.
And moving forward, that trend is only expected to strengthen. In the year 2050, the United Nations is predicting that 25% of the global population will be over the age of 65, up from just 10% today.
An aging global population is expected to drive huge increases in demand for healthcare products and services, presenting a big opportunities for early investors to profit from the trend. Here is one of my favorite stocks to cash in on the aging domestic and global populations.
AmerisourceBergen Corp. (NYSE: ABC) is a wholesaler of both branded and generic drugs to pharmacies and physicians in the United States and Canada and has a market cap of $12 billion. One of the biggest reasons I like AmerisourceBergen is because as a wholesaler of drugs from original manufacturers, the company is insulated from weakness or competition in one particular drug. That provides the company with excellent product and revenue diversification.
Analysts are looking for earnings of $3.07 in 2013 and earnings growth of 19% in 2014. That has shares trading with a forward P/E of 18 times, directly in the middle of the ten-year high of 23 times and the ten-year low of 14 times. And with a dividend yield of 1.6%, AmerisourceBergen is a great way to capitalize on the aging global population.
Your Investment Partner,
Mike
