3 growing heath care stocks you need on your watch list

A growing industry and growing companies makes for a healthy investment combination.

| More on:

The attraction of investing in the health care sector is obvious and investors need only look at a chart of stocks such as CSL Limited (ASX: CSL) and Ramsay Health Care Limited (ASX: RHC) – which have produced share price gains of 819% and 735% respectively – to realise that the sector is home to some outstanding businesses with brilliant growth prospects.

The “catch” for investors is that the high quality businesses and growth profiles of the likes of CSL and Ramsay is blindingly obvious! As a result many health care stocks trade with hefty premiums in acknowledgement of that fact. However with careful selection and understanding of the earnings growth potential of certain companies, there could still be opportunities for investors today with the following three stocks worth keeping an eye on.

1)      ResMed Inc. (CHESS) (ASX: RMD) offers investors exposure to the fast growing sleep apnea market. There is believed to be an enormous undiagnosed percentage of the population suffering from this condition. As one of the world’s leading providers of breathing treatments for sleep apnea, ResMed is well positioned to continue its impressive track record of growth.

2)      Cochlear Limited (ASX: COH) also operates in the medical device segment like ResMed, however its products treat hearing impairment. While its cochlear implant products for treating profound deafness in children are well known, perhaps less widely understood is that Cochlear also provides hearing solutions to adults. An ageing population and more importantly a growing global middle class should see Cochlear’s sales revenue continue its long-term growth trend.

3)      Virtus Health Ltd (ASX: VRT) has been one of the most successful initial public offerings (IPOs) of the past year. The company recently announced the acquisition of Ireland’s largest IVF provider which gives it not only a strong foothold in Australia, but also Ireland and with the potential to expand into the UK. The soon to be floated Monash IVF Group Ltd (ASX: MVF) which is expected to list on June 25 will add further depth to this sector for investors.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of August 16th 2021

Motley Fool contributor Tim McArthur does not own shares in any of the companies mentioned in this article.

More on ⏸️ Investing