With the baby boom getting older, the demand for products and services from ‘death stocks’ is practically guaranteed to increase.
These are a few stocks that may prosper from the aging of the American population:
Matthews International Corp. (MATW) manufactures and markets cast bronze memorials, wood and metal caskets, cremation equipment, and other related products. It has a P/E of 19.5 and a price sales ratio of 1.8. Last Friday, it announced a 2.5 million buyback. It pays a small yield of .6%.
Hillenbrand Industries Inc. (HB), which is based in Batesville, Indiana has a subsidiary in the funeral service business, which makes and markets caskets, cremation containers and urns. It also has other divisions in the medical technologies and health care industry. The P/E is 16.7 and the P/S is 1.9 and the PEG is 1.9. Its yield is 1.9%.
The Houston, Texas based company, Service Corp. International (SCI) owns funeral homes, cemeteries, and crematoriums in the United States, Canada and Germany. It has a fairly high P/E of 63, a P/S of 2, and a PEG of 2.5. Dividends are providing a yield of about 1%.
Another Houston based company Carriage Services Inc. (CSV) is also in the casket, funeral, and cremation business. Earnings have been negative but forward P/E is 17.7. Price sales is 1 and PEG is 1.9. Its earnings announcement will be on May 2.
Stewart Enterprises Inc. (STEI) is another company, based in Louisiana, that owns funeral homes and cemeteries. Its P/E is 20.3, P/S is 1.5, and PEG is 3. It pays a yield of 1.3%.
A Pennsylvania company, Stonemor Partners LP (STON), specializes in the ownership and operation of cemeteries. It has a very high yield of 76, and an extremely high PEG of 43. However, the stock does have a yield of 7.75 and is structured as a limited partnership.
Disclosure: The author does not own any of the above.