JPMorgan makes BofA stock list for aging world

The world population is aging rapidly.

Between 2019 and 2050, the number of people age 65 or older is expected to more than double globally, Bank of America analysts wrote in a commentary.

This will stem from an increase in life expectancy and a decline in fertility rates, they said. The aging of the world will mean “structural trends of growing old-age dependency, a shrinking workforce, challenged pension sustainability, higher health care spending and pressure on public budgets,” the analysts said.

Solutions include “innovations and investments in health and training, greater adoption of technology, automation, artificial intelligence, smarter care and financial planning,” they said.

Sectors that will benefit include financial services, healthcare and life sciences.

Analysts identify 11 stocks that should benefit from the aging trend:

· Prudential (PUKPF) a British insurer focused on emerging markets;

· AIA Group (AAIGF) a Hong Kong-based Asia-Pacific insurer;

· JPMorgan Chase JPM, the largest bank in the United States;

· UBS XUHJF, the Swiss Bank;

· Amundi (AMDUF) a Paris-based asset manager;

· Nihon M&A Center (NHMAF) which offers mergers & acquisitions and IPO services;

· SMS (SMSZF) a Japanese nurse recruitment company;

· AMN health services (AMN) – Get the AMN Healthcare Services Inc reportan American healthcare personnel recruitment company;

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· Confinimmo CFMOF, a Belgian healthcare real estate investment company;

· Building (AEDFF) , another Belgian healthcare real estate company; and

· well tower (GOOD) – Get the Welltower Inc. report.a US healthcare REIT.

Morningstar’s take on JPMorgan Chase

Morningstar analyst Eric Compton credits the company with a wide moat and puts the stock’s fair value at $151. It recently traded at $128.06.

“JPMorgan Chase is arguably the most dominant bank in the United States,” he wrote in a comment.

“With leading investment banking, commercial banking, credit card, retail banking, and leading asset and wealth management franchises, JPMorgan is truly a force to be reckoned with.”

In addition, “the bank’s combination of scale, diversification and sound risk management seems like a straightforward path to competitive advantage, but few other companies have been able to execute a similar strategy,” he said. Compton said.

“Even the best-run banks aren’t immune to the occasional stumble, but JPMorgan has apparently managed to pull all the pieces together in a more consistent and less error-prone way than its peers.”

Morningstar’s take on Welltower

Morningstar analyst Kevin Brown gives the company no ditch and puts the stock’s fair value at $97. It recently traded at $86.03.

“Welltower will benefit from… industry tailwinds due to its portfolio of high-quality assets connected to leading operators in the senior housing, skilled nursing facilities and medical office buildings segments,” said he wrote in a comment.

“The company has also spent years building and developing relationships with many of the top operators in each segment. These relationships enable Welltower to drive revenue improvement initiatives and cost control efficiencies at the property level. »

But Welltower doesn’t get a moat because senior housing is one of Welltower’s largest segments, Brown said. There is no barrier to entry into this industry, which means there is no limit to supply.

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