Safe And Sound At Home
This last stock is my favorite as the biggest potential beneficiary of the aging demographic. Nine in 10 seniors say they prefer to grow old at home, and research by AARP shows that 31% of people older than 65 live alone. That is more than 12 million people who face risks of injury and threats to their safety at home.
By 2020, when the 65-and-over group is expected to reach 55 million, the number living alone could approach 20 million. This estimate could actually be on the low side, as new technology is allowing more to stay in their homes but still enjoy the security of health and safety monitoring.
This company has the potential to help millions of seniors stay in their homes, multiplying its customer base from 6 million in 2012.
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| ADT Corp. is the largest provider of electronic security and home monitoring in North America, with a huge growing market for home automation. |
The company’s inclusive program, ADT Corp (NYSE:ADT) Pulse, allows customers to remotely monitor and manage their homes through the security systems, adjusting mechanical systems and monitoring video on smartphones and tablets.
Not only is ADT Corp (NYSE:ADT) a good stock to profit from the aging demographic, but it’s also a good safety stock for your portfolio. Revenues are less cyclical because spending on security is often seen as a necessity rather than a discretionary expense.
The company is still working through expenses related to its 2012 spinoff from Tyco International Ltd. (NYSE:TYC) and its management as an independent company. There are bound to be stumbling blocks, but sales have grown at a 13% pace since 2009, with net income growing at an annual pace of 17%.
Risks to Consider: These stocks are not without the possibility of short-term problems. While higher demographic-led revenues might drive growth over the next decade, management missteps and macroeconomic issues could mean additional volatility over the next couple of years.
Action to Take –> The investment theme behind these stocks is long term, so you don’t have to rush into a full position. For these holdings, I like to accumulate small chunks before and after earnings announcements. This strategy allows me to catch some of the big upside on a surprise earnings call or to save some cash to get in at a lower price.
P.S. — These stocks aren’t the only way to profit big in coming years from a smart prediction today. Our previous predictions have returned up to 310% gains in a year. To hear our latest, including how Apple’s next breakthrough could kill the traditional bank, click here.
– Joseph Hogue
The article Special Report: How To Invest In The ‘Graying Of America’ (Part II) originally appeared on StreetAuthority and is written by Joseph Hogue.
Joseph Hogue does not personally hold positions in any securities mentioned in this article. StreetAuthority LLC does not hold positions in any securities mentioned in this article.
