Under a similar principle to gravity (what goes up must come down), targeting baby boomer stocks to buy aligns with harsh realities: those who are born into this planet eventually get older. Yes, even millennials and Generation Z will at some point be yelling at kids to get off their lawn. Given that we’re talking about an absolutely guaranteed outcome, the narrative for baby boomer-geared investments seems attractive.
To be sure, one can’t guarantee that all or any of the below baby boomer stocks to buy will rise in value. However, the hard numbers suggest that investors should plan ahead. According to the Pew Research Center, millions of boomers retire each year from the U.S. labor force. Additionally, the pace of these retirements accelerated since the coronavirus pandemic. Therefore, it’s not just millennials that you should be paying attention to. Below are top baby boomer stocks to buy.
|SKT||Tanger Factory Outlet||$18.68|
|WBA||Walgreens Boots Alliance||$35.80|
Frequent InvestorPlace readers may recognize AllianceBernstein (NYSE:AB) as one of the Nancy Pelosi stocks to consider. Given that the global asset management firm commands such interest from high-profile individuals, AB certainly deserves top honors for baby boomer stocks to buy. Primarily, the company caters to institutional, high-net-worth and retail investors. It’s the elite helping the elite.
Further, baby boomers hold the most wealth in this nation as an age cohort, which isn’t surprising. Moreover, it’s not too much of a stretch to assume that these folks will want premium guidance. Fortunately, AllianceBernstein only hires the best and therefore can navigate clients through thick and thin.
Per Gurufocus.com’s proprietary calculations for fair market value, AB pings as significantly undervalued. Objectively, AllianceBernstein features a return on equity of 16.49%, indicating an extremely high-quality enterprise.
Finally, Wall Street analysts peg AB as a consensus moderate buy. Their average price target stands at $41.50, implying 5% upside potential. As well, the company carries a forward yield of 7.08%. Thus, it’s a solid candidate for baby boomer stocks to buy.
A real estate investment trust (REIT), Welltower (NYSE:WELL) specializes in healthcare infrastructure. Specifically, it provides real estate capital to leading seniors housing operators, post-acute care providers and health systems. Naturally, WELL practically sells itself as one of the baby boomer stocks to buy. Since the January opener, shares gained nearly 14%.
To be fair, Welltower will require some patience from prospective investors. Financially, its balance sheet features only modest strengths. Mathematically, its Altman Z-Score of 1.38 sits in the distressed zone, reflecting higher-than-average bankruptcy risk in the next two years. As well, its profitability took a hit since the imposition of the post-pandemic new normal.
So, why mention it among baby boomer stocks to buy? Mainly, the narrative remains compelling. Moreover, as society settles into the new normal, Welltower’s financials could improve.
Finally, Wall Street believes in WELL, pegging shares as a consensus moderate buy. Analysts’ price target of $80.50 implies almost 6% upside potential. Plus, the company carries a forward yield of 3.2%.
Tanger Factory Outlet (SKT)
Without getting into macabre details, getting older can stink as social networks fade away. Younger family members understandably may be focused on building their lives. As well, when people age, things happen. From that perspective, Tanger Factory Outlet (NYSE:SKT) might be one of the baby boomer stocks to buy. The business combines social integration with consumer retail discounts.
Another notable circumstance is that more than a decade ago, brick-and-mortar retail destinations made a concerted effort to make their stores senior-friendly. With Covid-19 largely out of the picture, SKT could be intriguing.
In fairness, much like Welltower, investors will need plenty of patience with SKT. However, it does offer some attractive attributes. For instance, its price-to-sales ratio sits at 4.45 times, lower than the industry median of 7.12 times. As well, SKT trades at 10.19-times free cash flow (FCF), rank below nearly 72% of the competition.
Lastly, analysts peg SKT as a consensus hold. However, their average price target of $20 implies over 6% upside potential. Further, Tanger carries a forward yield of 4.68%.
Walgreens Boots Alliance (WBA)
A holding company, Walgreens Boots Alliance (NASDAQ:WBA) owns the retail pharmacy chains Walgreens and Boots. Fundamentally, the case for WBA as one of the baby boomer stocks to buy makes plenty of sense. Again, stuff happens when you become a senior citizen – not all of it pleasant. Therefore, these folks may require more trips to their local pharmacies, cynically boding well for WBA.
Also, it’s interesting that on the first Tuesday of every month, Walgreens hosts Seniors Day. This program gives those ages 55 and up 20% off select purchases. From that angle, WBA screams as a prime candidate for baby boomer stocks to buy.
As with the other ideas on this list, Walgreens will require patience. However, it offers an attractive discount. For instance, WBA trades at a forward multiple of 8.05. This stat sits well below the industry median value of 25.4.
Turning to Wall Street, analysts peg WBA as a consensus hold. However, their average price target of $39.75 implies nearly 10% upside potential. Moreover, Walgreens carries a forward yield of 5.3%.
Ensign Group (ENSG)
According to its website, Ensign Group (NASDAQ:ENSG) specializes in post-acute care. Its broad spectrum of businesses includes assisted living, skilled nursing and rehabilitative care. Naturally, with advanced age comes certain challenges. Therefore, ENSG sells itself as one of the baby boomer stocks to buy. Notably, over the trailing year, ENSG gained nearly 13% of equity value.
While every investment carries risks, Ensign’s financials feature arguably more positives than other senior-specific entities. For instance, its three-year revenue growth rate stands at 13.5%, above 64% of its peers. Its net margin pings at 7.43%, outpacing 72.29% of the competition.
Moreover, the market prices ENSG at a forward multiple of 19.25. As a discount to earnings, Ensign ranks better than 65.49% of sector peers.
Looking to the Street, covering analysts peg ENSG as a consensus strong buy. Additionally, their average price target stands at $108, implying over 20% upside potential. Thus, it’s a growth-oriented candidate for baby boomer stocks to buy.
If you peruse the cesspool of internet forums on the topic of crime and self-defense, you’ll eventually encounter quite a few keyboard commandos. While it might sound romantic to blast baddies away, here’s the deal: criminals often target senior citizens because of their diminished physical vitality (relative to their youth). Therefore, security system and solutions provider ADT (NYSE:ADT) ranks among the top baby boomer stocks to buy.
While millions of millennials take care of their boomer parents, they can’t be there for them all the time. And that’s where security systems like ADT offer incredible relevance. Perhaps not surprisingly, ADT gained slightly over 12% of equity value in the trailing year.
To be fair, ADT carries some flaws in its financials. Its balance sheet could use some work, particularly its low cash-to-debt ratio. Also, its net margin slipped into negative territory in the trailing year. However, the market prices ADT at a forward multiple of 12.66. That’s below the sector median of 14.49.
Finally, analysts peg ADT as a consensus moderate buy. Further, their average price target stands at $10.50, implying over 30% upside potential.
With e-commerce giant Amazon (NASDAQ:AMZN), we’re not exactly talking about an exclusive player among baby boomer stocks to buy. If we’re being totally honest, Amazon caters to the youth and youthfully minded. After all, the company’s diving headfirst into several burgeoning sectors, such as cloud computing and machine learning. That’s not exactly what you think about when considering boomers.
Still, e-commerce as a percentage of total retail sales accelerated since the first quarter of 2022. Part of that demand could stem from seniors. Basically, they can order whatever they want and have it delivered, which represents a significant convenience.
To be fair, Gurufocus.com warns that AMZN may be a possible value trap. if I’m being completely transparent, the skyrocketing inflation of 2022 didn’t help matters financially. Still, Amazon remains a growth machine. For instance, its three-year revenue growth rate stands at 21.9%, outpacing over 84% of the competition.
Lastly, Wall Street analysts love AMZN, pegging it a consensus strong buy. As well, their average price target stands at $137.05, implying 43% upside potential.
On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.