There are a number of catalysts ahead for fertility stocks and many investors may be missing out, according to Barclays. The bank recently analyzed stocks tied to the theme and spoke with investors about it. “Our conversations with investors suggest that the fertility theme has been rather overlooked so far,” analyst Laia Marin wrote in a note last week, the second part of a two-part look at fertility stocks. But Marin sees an improvement in the investment narrative as global fertility rates decline more rapidly than expected. “In addition to the demographic effects of an aging population , cultural shifts such as the increased presence of women in the workforce continue to be a key driver of lower fertility rates, with one in six people worldwide affected by infertility,” Marin wrote in a late July note, citing data from the World Health Organization. “In our view, this structural backdrop will increase demand for fertility treatment, particularly in countries where populations have already peaked (e.g. Europe, China, Japan, South Korea, Russia) and in those where fertility rates remain extremely low despite the overall population being expected to grow (e.g. the U.S.),” she added. Four key catalysts Fertility stocks span different sectors, ranging from insurance provider Progyny to pharmaceutical maker Organon , a women’s health spin-off from Merck in 2021. PGNY 1Y mountain Progyny one-year performance Barclays sees four key catalysts for the group. For one, there are broader fertility policy approaches emerging around the globe, Marin said. Specifically, policies in countries where the population has already peaked — such as Europe, China and Japan — could play a key role in bringing fertility rates back to replacement levels of 2.1 births per woman. This could also apply to countries, like the United States, which have populations that are expected to grow but have very low fertility rates. “Historically, government policies attempting to raise birth rates have had limited effectiveness, but encouragingly broader policies beyond financial incentives are emerging, which could prove more successful going forwards,” Marin said. That includes a focus on family planning considerations, like parental leave, as well as efforts related to childcare and access. Second, employers are increasingly offering fertility health benefits, she pointed out. Some 43% of U.S. companies with at least 500 employees covered vitro fertilization (IVF) in 2022, up from…
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