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3 Nursing Home Stocks to Watch in 2022

By 2050, 22% of Americans will be seniors. The value of nursing home stocks should reflect that aging cohort. Keep reading to learn more.
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No one ever said they want to spend the rest of their lives in a nursing home. Unfortunately, the reality is that’s where a significant portion of the elderly and disabled population end up. Demographically, about 16.5% of the American population is currently over 65. By 2050, 22%, or more than one out of five Americans will be seniors. The value of nursing home stocks should reflect that rapidly aging cohort.

The Eldercare Industry

The eldercare industry consists of various sectors. For instance, these include:

  • Independent living
  • Assisted living facilities
  • Skilled nursing facilities
  • Nursing homes

We’ll concentrate on companies whose primary business involves skilled nursing facilities and nursing homes. The difference between the two is that the former is a temporary residence for those undergoing medical rehabilitation, and the latter is a home for residents requiring 24/7 care. In fact, there is a fair degree of overlap between them.

Keep reading for more info on nursing home stocks.

No. 3 National HealthCare Corporation (NYSE: NHC)

Headquartered in Murfreesboro, Tennessee, National HealthCare Corporation operates 75 skilled nursing centers, 24 assisted living facilities, 35 home care agencies, 29 hospice agencies and five retirement communities. Other services include rehab facilities, senior care pharmacies, memory care and a hospital. NHC has been in business for 50 years. It’s the country’s oldest publicly-traded long-term healthcare company. Additionally, most of its facilities are located in the southeastern U.S.

In 2021, its net operating revenues and grant income totaled $1,074,302,000. That was an increase of 4.5% compared to 2020’s net operating revenues of $1,028,217,000. However, most of that increase was attributable to the June 2021 controlling equity acquisition of hospice provider Caris Healthcare.

As of May 17, 2022, the stock’s 52-week history ranges from a low of $61.89 to a high of $78.42. On May 5, the nursing home stock announced a 3.6% dividend increase for the second quarter over the first quarter of 2022.

No. 2 Omega Healthcare Investors (NYSE: OHI)

Omega Healthcare Investors is a triple net equity Real Estate Investment Trust (REIT). OHI has been investing in senior care for 30 years, providing capital for operators of skilled nursing facilities and assisted living facilities. It partners with 64 of “the most future-focused, growth-oriented” operators in the U.S. and U.K. The REIT has helped these operators accelerate their growth strategies via $1.45 billion in unsecured credit.

On May 2, 2022, the company announced results for the first quarter of 2022. Additionally, net income was $195.2 million or $0.79 per common share. CEO Taylor Pickett said OHI’s near-term Funds from Operations (FFO) and Funds Available for Distribution (FAD) financial results were affected by the nonpayment of rent by several operators. However, as the impact of the Omicron variant receded, portfolio occupancy improved as the quarter progressed. This nursing home stock declared a $0.67 per share cash dividend on common stock.

In the first quarter, OHI acquired 27 care homes in the U.K. for $100 million. Earlier in the quarter, it acquired three other U.K. care homes. Two were purchased for $8 million and the third for $5 million. It also bought a Maryland skilled nursing facility for $8.5 million in this period. Under its capital renovation and construction program, OHI invested $20 million in this quarter. Additionally, as of May 17, OHI’s 52-week range was $24.81 to $38.19.

No. 1 Sabra Health Care REIT (Nasdaq: SBRA)

Based in Irvine, California, and operating since 2010, Sabra Health Care REIT invests in skilled nursing facilities, behavioral health facilities, and senior housing throughout the U.S. and Canada. While there are Sabra-owned properties in 41 states, the bulk of its U.S. holdings is located in Texas and California. This nursing home stocks portfolio currently consists of 416 real estate properties for investment. For example, these include:

  • 279 Skilled nursing facilities
  • 59 Senior housing communities
  • 50 Senior housing communities operated by third-party managers
  • 13 Behavioral health facilities
  • 15 Specialty hospitals

Taken together, these investment properties total 41,445 beds or units.

According to its first-quarter 2022 earnings report, Sabra collected 99.5% of its forecasted rents from the beginning of the pandemic up to April 2022. While there were “initial headwinds” related to the Omicron variant, the company’s seven largest skilled nursing tenants saw sizable occupancy increases during this quarter. The company has approximately $1 billion in liquidity,

The company declared a quarterly cash dividend of $0.30 per share of common stock. In addition, as of May 17, the company’s 52-week range was $11.44 to $19.02.

Nursing Home Stocks Challenges

Nursing home residents were particularly vulnerable to COVID-19. Many of these elderly residents died during the earliest days of the pandemic. In addition, staffing shortages exacerbated the dire conditions in many nursing homes during this time. Due to long-term triple net leases, REITs were insulated to some degree, as long as operators continued to pay the rent.

There is also a move by the government to push private equity out of the skilled nursing sector. In 2021, 89% of the $3.7 billion spent on skilled nursing transactions involved private buyers. The view is that Wall Street’s acquisition of nursing home stocks was resulting in a lower quality of care and higher costs in nursing homes.

Nursing Home Stocks Considerations

By 2030, less than a decade from now, every Baby Boomer will be over 65. Those over 85, the group most likely to need nursing home care, is growing even faster. Although nursing home stocks were hit badly by the pandemic, the sheer number of elderly people and a caregiver deficit should mean such facilities are the only option for many in the near future.

The post 3 Nursing Home Stocks to Watch in 2022 appeared first on Investment U.

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Economics

Relief rally or sustained bounce?

In this video insight Roger discusses current market conditions with equities having rallied off the lows recently thanks to a lower oil price and a retreat…

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In this video insight Roger discusses current market conditions with equities having rallied off the lows recently thanks to a lower oil price and a retreat in bond yields amid fears of a recession. Have we reached the bottom yet?

Transcript

Roger Montgomery:

You have probably been relieved seeing the market rally over the last few days. The S&P500 Index made a low on June 17 and has since bounced almost eight per cent, dragging markets globally up with it. I was personally feeling pleased with my recent additional investment in the Polen Capital Global Small and Mid Cap Fund. But investing is a long-game, we’re in it for years not minutes.

Nevertheless, one of the biggest objections to investing during a crisis – which history has shown to be the best time – is the possibility the market could fall further. And it could. 

Equities have rallied off the lows recently thanks to a lower oil price and a retreat in bond yields amid fears of a recession. Recession concerns are dominating the narrative and even the head of the U.S. Federal Reserve, Jerome Powell has admitted the risk. Meanwhile google searches for “recession” have spiked ten-fold and are as high as during the Global Financial Crisis and the onset of the COVID pandemic.

Perhaps counterintuitively, recessions can be good news for equities particularly if prices have already fallen dramatically. That’s because, rather than focusing on the negative pressure on company earnings, investors instead look to the fall in bond yields and the consequent positive effect on present values.

But should we be getting too excited? Have we hit the bottom already? Even though I have recently invested additional capital, I am not certain we have hit the bottom. I can see reasonable arguments to suggest there could be more losses for equities. To be clear of course this would be a positive for anyone who considers themselves a net buyer of shares. The lower the price goes, the higher the subsequent return.

The U.S. Federal Funds futures curve has recently reduced its bet on additional aggressive rate hikes and is even forecasting an easing of interest rates next year. Along with the decline in the oil price and other commodities such as wheat, corn and copper, the reversal of rising bond rates suggests investor sentiment had switched recently from inflation to recession.

Unfortunately, the optimism is due to the U.S. Federal Reserve’s history of backing off rate rises whenever the equity market has fallen between 15 and 20 per cent. It’s known as the “Fed Put.”

It is true that the U.S. Federal Reserve eases aggressively when bear markets in equities precede recessions. However, it is also true that when the Fed has chickened out the circumstances were very different to today.

Since the 1990s, and certainly after the GFC, the primary problem confronting central banks and governments has been pallid organic economic growth and low inflation, and even the intermittent threat of deflation. Understandably, rate cuts make sense.

But prior to the 1990s the Fed’s response differed. In the 1970s for example persistent inflation meant Fed policy was aimed squarely at fighting inflation, with less concern for the impact on economic growth. Back then the Fed raised rates despite already large falls in the stock market and a weakening economy.

I cannot be sure of whether today’s U.S. central bank will be as callous as it was decades back however the reality is inflation has broken out and wage growth is accelerating with unions protesting and striking, risking a dangerous wage-price spiral.

So have we reached the bottom yet? Well, uncertainty about the Fed’s stance is sure to mean more volatility. Until we get a clear read on interest rates, the lows could easily be retested.

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Government

5 Top Biotech Stocks To Watch In July 2022

Amid choppy markets, could there be potential in these top biotech stocks?
The post 5 Top Biotech Stocks To Watch In July 2022 appeared first on Stock…

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Should Investors Be Watching These Top Biotech Stocks In The Stock Market Now?

Just as most people think that pandemic woes are behind us, we now have the emergence of the monkeypox. While this virus may not be as contagious as the coronavirus, there is still a real cause for concern. On Tuesday, the Centers for Disease Control and Prevention (CDC) announced the activation of an emergency operations unit for monkeypox. This signals the initial stages of a public health concern. Epidemiologist Dr. Eric Feigl-Ding believes that the number of cases could reach 100,000 worldwide by August. In light of these circumstances, biotech stocks could be gaining more attention in the stock market. 

Furthermore, the coronavirus is not going away anytime soon. Recently, the U.S. Food and Drug Administration (FDA) Vaccines and Related Biological Products Advisory Committee (VRBPAC) voted that there is a need to modify the current strain composition of available COVID-19 vaccines to target the Omicron variant. If this is approved, vaccine makers such as Pfizer/BioNTech, and Moderna (NASDAQ: MRNA) will need to provide modified boosters of their coronavirus vaccines. In fact, Pfizer (NYSE: PFE) and BioNTech (NASDAQ: BNTX) just announced a new vaccine supply agreement with the U.S. government. Under the agreement, the U.S. government will receive 105 million doses with an option of up to 195 million additional doses. With all this in mind, here are five of the top biotech stocks to note in the stock market today. 

Biotech Stocks For Your July 2022 Watchlist

Regeneron Pharmaceuticals 

biotech stocks to buy (regn stock)

First up, we have the integrated biotech company, Regeneron Pharmaceuticals. Essentially, the company discovers, invents, manufactures, and commercializes medicines for serious diseases. For the most part, its medicines and products aim to help patients with eye diseases, allergic and inflammatory diseases, cancer, cardiovascular, and metabolic diseases. REGN stock has been trading sideways over the past year. 

Having said that, the company received a boost on Wednesday as the U.S. FDA has accepted for review the EYLEA Injection supplemental Biologics License Application for every 16-week 2 mg dosing regimen. This specifically caters to patients with diabetic retinopathy. Should this go according to plan, the 16-week dosing regimen could offer patients a potentially longer treatment interval. Also, it will allow doctors to have greater flexibility to individualize treatment. Given such a positive development, should investors be paying more attention to REGN stock?

[Read More] Stock Market Today: Dow Jones, S&P 500 Falter; Walgreens Stock Slides Despite Strong Quarter

Sanofi

best health care stocks to buy now (SNY stock)

Another top biotech name making waves this week is Sanofi. The France-based company engages in the research, development, and marketing of therapeutic solutions. Over the past week, there have been several key developments that could potentially excite investors. For starters, the company and GSK (NYSE: GSK) announced positive data from their vaccine trial last Friday. The vaccine candidate is the first to ever demonstrate efficacy in a placebo-controlled trial in an environment of high Omicron variant circulation. 

Furthermore, Sanofi’s Nexviadyme (avalglucosidase alfa) has recently gained marketing authorization from the European Commission. For the uninitiated, this is an enzyme replacement therapy for long-term treatment of both late-onset and infantile-onset Pompe disease. This is a significant development because Nexviadyme is the first and only newly approved medicine for Pompe disease in Europe since 2006. On that note, would you say that SNY stock is a top biotech stock to watch?

Novavax

best biotech stocks (NVAX stock)

Following that, let us look at the biotech company, Novavax. In detail, it promotes improved health globally through the discovery, development, and commercialization of vaccines to prevent serious infectious diseases. Its recombinant technology platform harnesses the power and speed of genetic engineering. As a result, the company produces immunogenic nanoparticles designed to address urgent global health needs. That said, NVAX stock has been struggling to find its footing since the start of the year. 

During the VRBPAC meeting, Novavax highlighted data showing that its protein-based coronavirus vaccine showed epitopes across both the original strain and emerging variants. Therefore, it will be able to contribute to the generation of broadly cross-reacting antibodies. The company also provided pre-clinical data that suggests boosting with Novavax’s Omicron or prototype vaccine will induce an immune response against Omicron variants. Overall, there are reasons to believe that Novavax will close the second half of the year on a better note. With that in mind, would you consider adding NVAX stock to the top of your watchlist?

Arrowhead Pharmaceuticals 

ARWR stock

Arrowhead Pharmaceuticals develops medicines that treat intractable diseases by silencing the genes that cause them. It uses a portfolio of ribonucleic acid (RNA) chemistries and modes of delivery. Most of its therapies trigger the RNA interference mechanism to induce rapid, deep, and durable knockdown of target genes. Those following the medical space would notice that gene therapies have been gaining popularity within the industry over the past few years. Hence, it would not be surprising if investors are taking note of Arrowhead. 

As a matter of fact, the company recently claimed that its experimental drug fazirsiran can reduce the accumulation of mutant protein known as Z-AAT by 83%. This result is based on an open-label phase 2 trial involving 16 volunteers with alpha1-antitrypsin deficiency disease. For now, there is still no approved treatment for such genetic liver disease. All in all, Arrowhead appears to be making strides in the right direction. Thus, should you be keeping a closer tab on ARWR stock?

[Read More] Best Long-Term Stocks To Buy Now? 5 Semiconductor Stocks To Know

Global Blood Therapeutics

gbt stock

To sum it all up, we have the biopharmaceutical company, Global Blood Therapeutics. As its name suggests, this is a company that specializes in blood-related treatments. The company is currently focused on Oxbryta, an FDA-approved medicine that inhibits sickle hemoglobin polymerization. In addition, it is also advancing its pipeline program in Sickle Cell Disease with inclacumab, and GBT021601. Impressively, GBT stock has been on bullish momentum lately, rising more than 28% within the past month.

Not to mention, the company announced on Thursday that it initiated the Phase 2 portion of its Phase 2/3 trial of GBT021601. The study aims to evaluate the safety, tolerability, efficacy, pharmacokinetics, and pharmacodynamics of the drug. So far, the preclinical results and data have been encouraging. Smith-Whitley, the company’s head of research and development, believes the drug has “the potential to improve on the clinical results achieved with Oxbryta® at a lower daily dose.” If so, this would be a huge boost for the company as it continues to work towards its long-term goals. All things considered, is GBT stock a buy right now?

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The post 5 Top Biotech Stocks To Watch In July 2022 appeared first on Stock Market News, Quotes, Charts and Financial Information | StockMarket.com.

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Bonds

Bitcoin nears worst monthly losses since 2011 with BTC price at $19K

Bitcoin price action will seal monthly losses over 40% for the first time in 11 years if it closes at $19,000.
Bitcoin (BTC) drifted…

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Bitcoin price action will seal monthly losses over 40% for the first time in 11 years if it closes at $19,000.

Bitcoin (BTC) drifted further downhill into the June 30 Wall Street open as United States equities opened with a whimper.

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

U.S. dollar returns to multi-decade highs

Data from Cointelegraph Markets Pro and TradingView followed BTC/USD as it abandoned $19,000 to hit its lowest in over ten days.

Bulls failed to preserve either $20,000 or $19,000 at the hands of limp U.S. stock market moves, the S&P 500 and Nasdaq Composite Index down 1.8% and 2.6% respectively at the time of writing.

At the same time, the U.S. dollar once again staged a comeback to fix a trajectory toward twenty-year highs seen this quarter.

The U.S. dollar index (DXY) was above 105.1 on the day, coming within just 0.2 points of its highest levels since 2002.

U.S. dollar index (DXY) 1-day candle chart. Source: TradingView

"The US dollar (DXY) looks set to test highs last seen in December 2002 as the short-term downtrend is broken convincingly amid risk markets' continued crumble," researche and trader Faisal Khan summarized on Twitter.

Data on inflation meanwhile once more suggested the worst could be behind the market.

As Cointelegraph reported, however, central banks began to acknowledge that the low rates seen before COVID-19 may never return.

Bulls' worst month in 11 years

With the majority of on-chain metrics now at historic lows, price data hinted how far BTC could theoretically go in a bear market increasingly unlike the rest.

Related: No flexing for Bitcoin Cash users as BCH loses 98% against Bitcoin

Should it close at current levels of $19,000, BTC/USD would seal monthly losses of over 40% for June 2022.

That would make it the worst June ever and the heaviest monthly losses since September 2011, data from TradingView and on-chain monitoring resource Coinglass confirms. 

Even March 2020 and the 2018 and 2014 bear markets were less severe on monthly timeframes. 40% drops were last seen when BTC/USD traded at $8.

BTC/USD monthly returns chart. Source: Coinglass

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

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