By The US population is aging. In fact, according to Mizuho analysts, those aged 75 and more will likely make up about 10% of the country’s population by the end of this decade.
The investment firm expects spending attributed to American consumers in that age range to nearly double over the next five years, which could benefit several stocks through the end of this decade.
Two names in particular that Mizuho believes will gain due to this shift in the composition of the US population are Home Depot and GE Healthcare.
Home Depot Inc (NYSE: HD)
Mizuho expects Home Depot stock to benefit as the US population ages because people are often not comfortable with moving into a new house in old age.
This could lead to increased spending on home improvement, which could result in a significant benefit to HD shares in the coming years.
“A rapidly aging housing stock coupled with a shift towards services should represent an ongoing positive for home-related maintenance demand and repairs,” it told clients in a recent note.
Mizuho is positive on Home Depot stock because more than half of the US homes currently are at least 40 years old.
Its $450 price target indicates a potential upside of close to 30% from here.
A 2.62% dividend yield makes HD shares all the more exciting to own at current levels.
The strength of the company’s financials may be another reason to invest in Home Depot in 2025.
In February, the home improvement retailer reported $3.02 a share of earnings on $39.70 billion in revenue.
Analysts, in comparison, were at $3.01 per share and $39.16 billion, respectively.
GE Healthcare Technologies Inc (NASDAQ: GEHC)
Mizuho sees the recent pullback in GE Healthcare as an opportunity for long-term investors.
Its analysts are convinced that GEHC will benefit as people aged 75 and more make up a bigger chunk of the US population since seniors need more tests and procedures and, therefore, contribute significantly to the overall demand for health technology.
The investment firm recommends owning GE Healthcare shares at current levels also because the Nasdaq-listed firm is tapping on artificial intelligence to grow its business.
Just last week, the AI darling, Nvidia, announced a team-up with GEHC on autonomous imaging.
Much like HD, the company based out of Chicago, Illinois, is also doing well financially.
Last month, it reported $1.45 a share of earnings for its fourth quarter – well above the $1.26 per share that experts had forecast.
That’s why the rest of Wall Street agrees with Mizuho on GEHC.
The consensus rating on GE Healthcare stock currently sits at “overweight,” with the mean target of about $103 indicating a potential upside of some 25% from here.
Note that GEHC is a dividend stock that currently yields 0.17%.
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