Last up, Brookdale Senior Living, Inc. (NYSE:BKD), the largest of the three using market capitalization. The Company operates in four business segments including retirement centers, assisted living, continuing care retirement communities and management services. Earlier this year, management closed an acquisition of an additional 12 properties to bring its total portfolio up to 871. While the price to earnings multiple may be rich, analysts estimate the company will grow its earnings drastically over the next two years. Next year its expected the company will grow earnings by 115% prior to growing earnings again by 590% the year after. Out of the three, Brookdale Senior Living, Inc. (NYSE:BKD) is the most diversified option as a result of its size.
All three of these companies are positioned well to take advantage of the graying of the U.S. population. Additionally, I feel the fragmented senior living industry is due for consolidation prior to the drastic demand increases. While these companies use leverage for their operations, cash flows remain strong and consistent, thus decreasing the associated risks.
The article Finding Strength in Senior Living originally appeared on Fool.com and is written by Nathaniel Matherson.
Nathaniel Matherson has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Nathaniel is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.
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