As the Baby Boomers age, the number of elderly Americans has risen quickly. Specifically, the number of those 65 and older in the U.S. jumped 38.6% between 2010 and 2020 to 55.8 million. And in 2040, when the members of Generation X will have reached retirement age, 80 million Americans are expected to be 65 and older. This backdrop has led to this list of stocks to buy for an aging population.

These senior citizens need healthcare, medical devices, drugs, and specialized housing, and the companies that provide those products will generate huge profits.

Here are three stocks for an aging population for investors who want to benefit from those profit gains.

Medtronic (MDT)

Medtronic (NYSE:MDT) manufactures and markets various medical devices, including pacemakers,  defibrillators, aortic valves, and various other products used to treat patients with cardiovascular problems. Of course, such issues are far more prevalent in middle-aged and elderly people than in young individuals. As a result, I’m confident that Medtronic is one of the best stocks to buy for an aging population.

Medtronic is already growing significantly, as its top line rose 5% last quarter versus the same period a year earlier. Its bottom line rose 3% year-over-year, excluding foreign currency fluctuations.

In addition to the aging population, the proliferation of Medtronic’s robotic-assisted surgery (RAS) system, Hugo, should provide a positive catalyst for MDT over the longer term. Indeed, the head of MDT’s surgical business, Mike Marinaro, in April said that the RAS market is expected “to double over the next 10 years.”

Hugo is approved in Europe but has not yet been cleared by the Food and Drug Administration in America. When Hugo does receive a nod from the FDA, Medtronic’s top and bottom lines should get a significant lift.

Grand View Research estimates that the global RAS market will expand at a 21.6% average clip each year, jumping from $2.3 billion in 2020 to “$14 billion by 2028.” If MDT can get a 10% share of that $14 billion, MDT stock will surge tremendously between now and 2028.

Despite its current growth and strong, longer-term, positive catalysts, MDT stock has a low forward price-earnings ratio of 16.4 times. It also provides a significant dividend yield of 3.3%.

Tenet Healthcare (THC)

Unfortunately, people tend to need more hospitalization as they age. As a result, Tenet Healthcare (NYSE:THC), one of the largest owners of hospitals in the U.S., is benefiting from the rapidly aging population.

Last quarter, the company’s top line climbed 5.5% versus Q3 of 2022 to $5.07 billion, while its EBITDA, excluding certain items, advanced 7.6% year-over-year to an impressive $851 million.

And in the first nine months of the year, its cash flows from operating activities soared to $1.55 billion from $662 million.

“The aging of the population, the growing burden of chronic illness, the population shifts into many of our markets, and the continued impacts of service and technology innovation that occur outside of the pharmaceutical sector provide a significant tailwind for the important role that hospitals… will continue to play,” THC CEO Saum Sutaria said on the firm’s Q3 earnings call.

THC has a very low forward price-earnings ratio of 12.35 times.

Eisai (ESAIY)

As people age, many unfortunately fall victim to Alzheimer’s Disease. In partnership with Biogen (NASDAQ:BIIB), Japanese drug maker Eisai (OTC:ESAIY) has developed a drug, Leqembi, that has been shown to slow the progression of the disease meaningfully. Leqembi is the first Alzheimer’s treatment that has achieved that milestone.

Encouragingly, Eisai believes that 10,000 patients with mild Alzheimer’s, the subset for which the Food and Drug Administration approved the drug, will receive the treatment by the end of Q1 of 2024.

Also noteworthy is that the drug was approved in Japan in September.

Eisai’s shares have tumbled 27% since July. I believe that the Street is failing to appreciate that there is a very high chance of Leqembi becoming one of the best-selling drugs of all time. As a result, it’s one of the best stocks to buy for an aging population.

Given the latter point, Eisai’s forward price-earnings ratio of 34.35 times is meager and attractive.

On the date of publication, Larry Ramer did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.