Longevity spending is poised to explode. One stock to profit from the trend

Listen to the audio version of this article (generated by AI).

Today’s issue in preview:

• Longevity spending is poised to explode. One stock to profit from the trend

• One of our top recommendations is booming… are you benefiting yet?

• Another key economic indicator flashes BULLISH for the U.S. economy. Are you heeding its advice?

• Learn our Top Themes to buy now

Another key economic indicator flashes BULLISH for the U.S. economy. Are you heeding its advice?

Credit: DarthArt

If you need a reason to be optimistic about the U.S. economy today, the market is providing one with PACCAR (PCAR) hitting a new all-time high.

This important new high tells us the big rig business is booming… which is great for America.

PACCAR is the largest U.S.-owned manufacturer of heavy-duty commercial trucks… aka “big rigs.” It is a $70 billon giant of American manufacturing.

Through its Kenworth and Peterbilt divisions, PACCAR (formerly Pacific Car and Foundry Company) sells a large share of the big trucks that haul our lumber, gravel, dirt, consumer goods, industrial machinery, toys, clothing, furniture, electrical grid components, and much more.

Next time you’re on the interstate, look closely at the trucks on the road. There’s a very good chance you’ll see many Kenworth or Peterbilt emblems.

The heavy-duty trucking industry isn’t glamorous. You’re not going to see any hyperbolic financial newsletter advertisements about a “$3 trucking stock that could rise 3,000%.”

However, heavy-duty trucks are “mission-critical” parts of the U.S. economy.

Nothing around here gets built or hauled without them.

This makes PACCAR stock an excellent “real world” indicator. Its fortunes rise and fall with America’s economic health. Its business is highly sensitive to the ups and downs of the overall economy. After all, big trucks are part of the economy’s circulatory system.

Right now, the transportation business is booming. Over the past six months, I’ve written over a dozen research notes about strong business results and rising stock prices in railroads, trucking firms, and delivery companies.

The strong business reports and soaring stock prices of transportation businesses tell us that, despite what the media reports, the U.S. economy is doing quite well.

Railroad operators and trucking firms like PACCAR don’t hit all-time highs when the economy is struggling. Instead, they hit new all-time highs when their businesses benefit from twin megatrends such as the U.S. manufacturing boom and the AI data center building boom.

The big bull market in transportation stocks flies in the face of all the negative and alarming economic stories the mainstream media likes to run.

But remember, market prices are the sum total and final expression of all knowledge held by industry insiders, connected investors, government officials, and bankers who quietly control huge swaths of the economy. These people know much more about their industries of focus than you or I do. Their knowledge manifests itself through action… and that action that sets market prices.

You can listen to whoever you like, but I’ll take the collective word of connected experts on this subject over journalists and media types who don’t know a bull market from a flea market. I remain bullish on America… and on the Made in America megatrend.

One of our top recommendation is booming… are you benefiting yet?

Credit: Ridofranz

“If you like money, keep it invested in health care.”

Speaking as someone who makes his living analyzing and trading business trends, this summarizes one of my highest-conviction recommendations for you.

And I’m not surprised to see it generating big returns right now…

As evidence, I present the new all-time high in Sonida Senior Living (SNDA). The stock jumped 5% this morning, reaching a new all-time high. It’s up 80% over the past year.

Avid Money & Megatrends readers know our longstanding bullish position on the Boomer health care megatrend.

More than 10,000 Americans reach retirement age every day. The U.S. population aged 80 and older is projected to roughly double from 14.7 million in 2025 to 29.4 million by 2045.

This is the enormous Baby Boom generation entering the phase of life where health care spending skyrockets. For many boomers, a typical month involves going to see at least one doctor to have something looked at, removed, or treated.

This means many health care businesses are experiencing huge demand now – and will for at least the next decade. It means boom times ahead for many “ology” businesses, stocks, and careers, such as dermatology, cardiology, radiology, oncology, anesthesiology, and ophthalmology. The list goes on. All the “ologies” will enjoy boom times.

This means investing in many health care businesses will be investing with a gale-force tailwind at your back. If you’re a parent and worried about your child getting a job, just point them to the booming health care industry. And if you like making money, keep it invested in health care.

Sonida (pronounced so-NEE-dah) Senior Living is an excellent demonstration of this megatrend at work. Sonida is one of America’s largest owners and operators of senior housing communities. It owns and operates Independent Living properties for active seniors who need little to no daily assistance, plus Assisted Living properties for seniors who need help with daily activities.

In its most recent earnings report, Sonida reported strong property occupancy rates and progress on a successful acquisition of CNL Healthcare Properties. As mentioned above, strong results and robust demographic tailwinds have driven the stock to new all-time highs.

Sonida isn’t a unique Boomer health care story. Fellow senior living firms Ventas (VTR), Welltower (WELL), CareTrust (CTRE), and American Healthcare REIT (AHR) have produced strong returns over the past year and are very close to or at new all-time highs. This is a broad, varied trend that has created dozens of big winners.

The giant business, tech, and demographic trends that shape our world tend to play out in five or more years, not five months. This means the stock market trends they manifest play out over the same time periods. With this trend truism in mind, I recommend staying bullish on Boomer health care.

Longevity spending is poised to explode. One stock to profit from the trend

Credit: svetikd

If the Boomer health care megatrend is going to continue – and I’ll bet you a lot of money it does for years – then Eli Lilly (LLY) is most likely going to lead the way.

Back in June, I detailed how drug giant Eli Lilly is uniquely positioned to benefit from soaring health care and longevity spending.

Data from the Federal Reserve shows that between 15 million and 20 million baby boomers are millionaires. More than 1 million boomers are worth more than $10 million. As mentioned above, the U.S. population aged 80 and older is projected to roughly double, from 14.7 million in 2025 to 29.4 million by 2045.

This is the largest group of wealthy people in history.

This means there are many motivated, older, wealthy people out there who can spend big on longevity.

One of the leaders of this investment trend – you could even call it the poster child – is drug giant Eli Lilly. Lilly is the world’s largest seller of glucagon-like peptide-1 (GLP-1) medications. GLP-1 drugs mimic a natural gut hormone. They control blood sugar by stimulating insulin release, which slows digestion and reduces appetite.

Over the past 5 years, this class of medications has exploded in popularity. Many people who take GLP-1 drugs see drastic weight loss in less than six months… which should extend their lives. Studies indicate that GLP-1 drugs may also lower cholesterol, slow cancer growth, and reduce the risk of cardiac disease.

In other words, GLP-1s are believed to be the closest thing to “miracle longevity drugs” that we currently have.

As a result, Eli Lilly’s sales are skyrocketing. The company recently reported quarterly sales growth of 56%. The results were driven by a 65% jump in demand for Lilly’s weight-loss drug Mounjaro… and they helped Lilly stock break out of a consolidation phase in May and reach a new all-time high. Bulls on the stock say the next generation of Lilly’s GLP-1 drugs will show greater efficacy and drive greater sales.

The Baby Boomers are a large demographic group that has entered a stage of life when spending on health and longevity skyrockets. Many of them have a lot of money they are willing to spend to pursue a longer healthspan. It’s all long-term bullish for Eli Lilly and other companies in the longevity business.

Market Notes

• Tech supergiant Apple (AAPL) reached a new all-time high today.

• Giant banks JP Morgan Chase (JPM) and Bank of America (BAC) reached new all-time highs today.

• Made in America megatrend beneficiary Applied Industrial Technologies (AIT) reached a new all-time high today.

• Chili’s restaurant operator Brinker International (EAT) continues to benefit from the bull market in full-service restaurants and robust consumer spending. The stock advanced 5% this morning, reaching a new all-time high.

• Shopping mall operator Macerich (MAC) continues to benefit from robust consumer spending. The stock jumped 2% to reach a new all-time high today.

• Defense giants General Dynamics (GD) and RTX (RTX, formerly Raytheon) reached new all-time highs today.

Regards,

Brian Hunt
Editor, Money & Megatrends

An urgent message from our colleagues:

It’s one of Trump’s biggest holdings. Do you own it?

President Trump owns up to $5 million in shares of this AI company (not Nvidia or SpaceX). He’s strongly endorsed its leadership and products. And he just awarded it with a nearly $10 billion Pentagon contract. No wonder one legendary fund manager says it could become the cornerstone of your retirement.

Click here for its name and ticker.