- The report breaks down companies by their exposure to young consumers through sub-sectors ranging from residential aged care to wealth management.
- Here are the top stocks per sector that Bank of America recommends for exposure to older consumers.
- Read more on Business Insider .
Baby boomers are the most prosperous generation in history. Here are 10 stocks millennials can buy to get in on the action, according to Bank of America.
Bank of America published an updated list of thematic stock picks. One of the themes is companies with high exposure to baby boomers.
For investors looking to cash in on the "silver wave," Bank of America Merrill Lynch has a comprehensive list of stocks with high exposure to baby boomers.
The bank recently published an updated list of picks for companies exposed to boomers, as a part of a quarterlyupdate to BAML's "Primer Picks" list, which saw it add 63 companies in total.
Baby boomers are currently the largest living adult generation in the US, with millennials closely behind, according to Pew Research . And, even if millennials do edge out boomers in size, they're unlikely to edge them out in spending power Boomers' wealth is 12 times greater than millennials .
That's a compelling reason to get behind companies with high exposure to boomers, and the report breaks down companies by their exposure level in different sub-sectors. The sub-sectors range from wealth and asset management to senior living and healthcare.
The goal is to illuminate "a diverse range of verticals for investors wishing to access the theme," Haim Israel, an equity strategist at BAML, wrote of the list.
In order to be highly exposed to the boomer theme, the company must have boomer-related products, technologies, services, and solutions that are core to the business model, strategy, and research and development of the company, according to the report. In addition, the products must move material sales, drive growth, or be a pure play.
There are also a number of stocks that are "Primer Picks." To be included as a Bank of America Primer Pick, the stock must have a high or medium exposure to the relevant theme. It must also be covered by a Bank of America Global Research fundamental analysts and have a "buy" rating when the quarterly update is published.
Here are the top boomer-exposed stocks in each of the 10 sub-sectors tracked by BAML:
Chemed (Residential Aged Care)
AP
Ticker: CHE
Boomer Sub-sector: Residential Aged Care
Market Capitalization: $7.28 billion
Primer Pick: Yes
Source: Bank of America Merrill Lynch
Welltower (Healthcare REITs)
REUTERS/Peter Nicholls/File Photo
Ticker: WELL
Boomer Sub-sector: Healthcare REITs
Market Capitalization: $36.2 billion
Primer Pick: No
Source: Bank of America Merrill Lynch
Brookdale (Senior Living)
Shutterstock
Ticker: BKD
Boomer Sub-sector: Senior Living
Market Capitalization: $1.4 billion
Primer Pick: No
Source: Bank of America Merrill Lynch
Acadia Pharmaceuticals (Biotechnology)
Mike Derer/AP
Ticker: ACAD
Boomer Sub-sector: Biotechnology
Market Capitalization: $4.49 billion
Primer Pick: Yes
Source: Bank of America Merrill Lynch
United Health Group (Managed Care)
Reuters
Ticker: UNH
Boomer Sub-sector: Managed Care
Market Capitalization: $225 billion
Primer Pick: Yes
Source: Bank of America Merrill Lynch
Cerner (Health Tech)
Glassdoor
Ticker: CERN
Boomer Sub-sector: Health Tech
Market Capitalization: $23.5 billion
Primer Pick: Yes
Source: Bank of America Merrill Lynch
Service Corp. (Consumer Death Care)
Flickr / Tony Alter
Ticker: SCI
Boomer Sub-sector: Consumer - Death Care
Market Capitalization: $8.8 billion
Primer Pick: Yes
Source: Bank of America Merrill Lynch
Royal Caribbean (Consumer Travel)
Thomas Layer/Associated Press
Ticker: RCL
Boomer Sub-sector: Consumer - Travel
Market Capitalization: $23.4 billion
Primer Pick: No
Source: Bank of America Merrill Lynch
UBS (Wealth Management)
Thomson Reuters
Ticker: UBS
Boomer Sub-sector: Wealth Management
Market Capitalization: $42.4 billion
Primer Pick: Yes
Source: Bank of America Merrill Lynch
Principal Financial (Insurance)
nysetv1 via YouTube
Ticker: PFG
Boomer Sub-sector: Insurance
Market Capitalization: $16.7 billion
Primer Pick: No
Source: Bank of America Merrill Lynch
See Also:
- A group of small tech stocks is quietly dominating the FANGs after lagging behind for years. Here's why a Wall Street expert is convinced its gains are just getting started.
- MORGAN STANLEY: 3 powerful indicators are reliable forecasters of future stock and bond returns and 2 of them are flashing red
- An acclaimed Morgan Stanley wealth adviser who helps manage $1.2 billion for the rich explains his approach to the market and why he's telling clients to 'take the win'
Eyewitness? Submit your stories now via social or:
Email: news@pulselive.co.ke