The healthcare sector has been on an absolute tear since 2012 and few expect it to stop any time soon. This reporting season has been another stellar example of this phenomenon, as many of Australia's biggest and brightest listed healthcare companies have again delivered the good medicine to local portfolios.
4 Top Healthcare Stocks to Buy in 2015
If you don't already have some or all of these companies in your portfolio or watch list then you should certainly have a long, hard look at yourself. At a time when the S&P/ASX 200 (INDEXASX: XJO) has fallen over 7% in the last month, these great companies are staying strong.
CSL Limited (ASX: CSL) shares managed to outperform the ASX 200 over the month despite falling over 6% in one day when the group's results slightly undershot estimates. CSL reported 6% growth in net profit after tax (NPAT) to US$1.38 billion, with earnings per share (EPS) rising 8% to US$2.92 per share (roughly AU $3.99 per share). The major catalyst for the next 12 months will be CSL's recent acquisition of the Novartis influenza vaccine business, making CSL the second-largest influenza vaccine manufacturer in the world.
Health insurance company Medibank Private Ltd (ASX: MPL) shares surged 16% higher in August following the release of a bumper earnings report that quelled many fears around the company. The health insurer revealed a 3.2% lift in group revenue to $6.58 billion and a 13.3% lift in underlying net profit after tax (NPAT) to $285.3 million compared to the prior corresponding period (pcp). This result was well ahead of the $258.2 million forecast in the group's prospectus.
Hospital operator Ramsay Health Care Limited (ASX: RHC) shares recovered late in the month after the company reported a huge 49.9% revenue increase and a profit of $385.5 million, up 27% on the prior corresponding period. The dividend was also increased by 18% and a quick look at the share price over time will show why this is a must-have company in your portfolio.
Similarly to CSL, the share price of Australia's other major listed hospital operator Healthscope Ltd (ASX: HSO) beat the ASX 200 despite delivering a profit that didn't excite analysts. Healthscope reported an 8.7% increase in operating earnings before interest, tax, depreciation and amortisation (EBITDA) to $388.3 million and a 4.8% improvement in revenue to $2.44 billion for the year ended June 30, 2015. Capacity restricted earnings, but with 10 construction projects underway that will deliver more beds and operating theatres in the second half of 2015-16, anything is possible next financial year.
