Baby boom an investor boon?

Far from the youngsters they once were, older folks are having an economic impact on the health care industry.

By Aug 20, 2013 11:33AM

Senior man in wheelchair looking out window (© Tetra Images/Getty Images)By John Blank

Although their generation's moniker sounds youthful, millions of that generation are now facing the challenges of age. Yes, the baby boomers are far from the babies they once were, and their needs are having an economic impact on the health care industry.

Specifically, the outpatient and home care industry is seeing revitalization as many seniors seek solutions and help with the challenges they face. Gaining 68 positions last week, this sector of 16 companies now ranks 39 at Zack's Industry Rank of of 260 industries. These businesses have recently seen 33 positive earnings estimate revisions compared to 13 negative revisions, averaging a positive earnings per share surprise of +35%.

And as people are living longer, the sheer volume of elderly people is constantly rising. With life expectancy topping 80 years and climbing, the amount of time individuals may be in need of these services is also a factor in the sector's growth.

The following service provider has been upgraded this week to a Zacks Rank #1 ("strong buy"). An upgrade in rank from a "buy" or "hold" to a "strong buy" demonstrates that a given stock may be gaining value following future positive earnings estimate revisions. By combining specific stock performance with perspective related to the industry as a whole, these movements may provide investors with additional insight into their portfolio. The stock also holds a long-term Zacks "outperform" rating.

And the company knows that taking care of others means taking care of business.

Addus Home Care (ADUS)

Addus was upgraded to a Zacks Rank #1 ("strong buy") last week from #2 ("buy"). Its next expected earnings report is on November 7, 2013.

Addus Home Care is a comprehensive provider of a broad range of social and medical services in the home. The company's services include personal care and assistance with activities of daily living, skilled nursing and rehabilitative therapies, and adult day care. Its consumers are individuals with special needs who are at risk of hospitalization or institutionalization, such as the elderly, chronically ill and disabled. Adding to its outlook are existing relationships with federal, state and local governmental agencies, the Veterans Health Administration, commercial insurers and private individuals.

ADUS's most recent quarterly earnings surprise was +15%.

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Tags: ADUS
Aug 20, 2013 12:04PM
Why not HCN REIT that's been clobbered by interest rate mojo and has gone down from $80 to $60 and is paying 5% dividends?   The dumping of all REIT's has been way overdone.
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