Shares of Vitamin Shoppe (VSI) were just upgraded from Neutral to Outperform at Wedbush, Credit Suisse and Wells Fargo.
I’m not a fan – yet – as the stock may have gotten ahead of itself.
On a dip, I may be interested only because of the coming “silver tsunami.”
Baby boomers have begun retiring by the thousands, clearing out their retirement accounts, spending trillions of disposable income just to keep their bodies going another 30+ years.
But what many don’t realize is that this major formidable, 20-year event will change just about everything. Not just because this generation holds trillions in wealth… not just because they’ll force massive changes in Social Security and health coverage…
But because this group expects to have longer, more active lives…
And that means they’ll spend heavily – at any cost – to keep their bodies in tip-top shape.
Retailers, marketers, doctors, gym equipment companies, and hair experts alike have already picked up on this very trend, as 80 million baby boomers spend whatever it takes to keep their bodies up to par.
GNC Holdings – a national retailer of supplements – just announced that baby boomers are one of its biggest buyers of its products for high blood pressure, digestion, eye and brain health, and muscle and bone density.
Vitamin Shoppe is likely to benefit from the trend as well. Keep an eye on it for now. It’s not a buy just yet.