9 juicy health care stocks to add to your portfolio: Part 2

Overlooked by the market, here are another 5 profitable health care stocks to add to your watchlist

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A few weeks ago, I began an article series highlighting some ASX healthcare stocks that looked mighty interesting. You can read the first part here, which covered four stocks.

In this article, I'll outline the remaining five companies that appear to have very bright futures. Now I'm not talking about speculative biotech stocks. All these companies are currently generating profits.

Medical Developments International Ltd (ASX: MVP) recently reported a 71% increase in net profit to $731,000 for the six months to December 2014. That came on the back of a 21% rise in revenues, as sales of Penthrox grew 39% and respiratory device sales were up 29%. The share price has followed that success, jumping 58% in the past year. While not cheap, Medical Developments is one to watch.

Paragon Care Ltd (ASX: PGR) supplies hospitals and aged-care facilities with medical equipment, including trolleys, beds, custom medical furniture, screening as just a small sample of the products it distributes. Paragon looks cheap at current prices particularly with the growth it has seen recently. Revenues for the last half jumped 65%, and management increased the dividend by 20%. That's not something you'll see from any large cap stocks.

Capitol Health Ltd (ASX: CAJ) is an up-and-coming diagnostic services provider and has recently expanded in a big way with recent acquisitions of Imaging @ Olympic Park in Melbourne and entry into the NSW diagnostic market with the purchase of Southern Radiology Group late last year. The share price has run hard, up 78% in the past year, but further gains may be on the cards once the acquisitions are factored in.

Vita Life Sciences Limited (ASX: VSC) sells a wide range of supplements, vitamins and minerals, meal replacement, sports nutrition through Asia and Australia, with 62% of revenues coming from Asia and growing rapidly. Entry into new countries and the release of other product lines into existing markets should drive growth. Vita Life is currently trading on a trailing P/E ratio of 11.9x, compared to its most direct competitor Blackmores Limited (ASX: BKL) on 24.7x. With revenue growth expected of between 8-10% per annum, that suggests Vita Life is cheap.

Last but not least, Global Health Ltd (ASX: GLH). The company provides software and applications for the healthcare industry but has seen its share price slide from a high of 80 cents to around 26 cents currently. Thanks to the loss of a licence in South Australia, Global health is forecasting flat revenues for the year ahead, and revenues of around $1.1 million. At that price, the stock is trading on a P/E ratio around 8x, which appears cheap.

Motley Fool writer/analyst Mike King owns shares in Capitol Health. You can follow Mike on Twitter @TMFKinga

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