The recent reporting season was interesting to study. A few results were underwhelming for the market and a couple of the below stocks were heavily sold off.
Healthcare businesses operate in one of the best sectors because of how defensive the earnings are.
Here are some of the healthcare shares that look very attractive to me:
Healthscope Ltd (ASX: HSO)
Healthscope is the second largest private hospital operator in Australia. Its share price has been pummelled down to $1.65. This is a long way down from the $3 price a year ago.
The business has an impressive list of new hospital projects and hospital expansions. In a few years the profit could get a big boost from more revenue and less construction costs.
Healthscope is trading at 15x FY19's estimated earnings with an unfranked dividend yield of 4.27%.
Japara Healthcare Ltd (ASX: JHC)
Japara is one of the largest aged care providers in Australia. The way the ageing demographics are heading means that there will be thousands of extra aged care beds needed over the coming years.
The market has been disappointed with Japara's lack of profit growth over the last year so the share price has been punished down to $1.70.
Japara is trading at 15x FY17's earnings with a fully franked dividend yield of 6.65%.
NIB Holdings Limited (ASX: NHF)
NIB is one of the largest private health insurers and has grown strongly over the last few years.
Market expectations were probably a little too high when NIB first reported, but the long-term outlook still looks good in my opinion.
NIB is trading at 22x FY18's estimated earnings with a fully franked dividend yield of 3.3%.
Foolish takeaway
Healthscope and Japara both look like good long-term investments to me. The current prices offer good dividend yields and good value, which could make them both market-beaters.