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Why I would buy these healthcare shares in 2018

One of the best performing areas of the market this year has been the healthcare sector.

With just one trading day left before the end of 2017 trade, the S&P/ASX 200 Health Care (Index: ^AXHJ) (ASX: XHJ) is up almost 24% thanks partly to the strong performance of the CSL Limited (ASX: CSL) share price.

While I wouldn’t necessarily expect a gain of this magnitude next year, I believe there are a number of healthcare shares with the potential to beat the market.

Here are two to consider:

Volpara Health Technologies Limited (ASX: VHT)

This exciting digital health company focused on the early detection of breast cancer recently provided the market with a positive trading update. That update revealed that annual recurring revenue is at NZ$2.6 million as of December 15, representing 138% growth on the prior corresponding period. Further to this, management believes that it is on course to meet or exceed its 200% target for the full year. Growth of this level is hard to find and could make Volpara worth a closer look.

Zenitas Healthcare Ltd (ASX: ZNT)

I believe that this home care and health services company is well-positioned to grow strongly over the next few years thanks to the National Healthcare Reform. Changes have been made with the aim of pushing the burden of healthcare services from hospitals into primary care. Furthermore, Zenitas has opportunities to accelerate its growth through acquisitions thanks to the highly fractured industry it operates in.

Lastly, here are three more fast-growing shares that I think investors ought to consider buying in 2018.

Top 3 ASX Blue Chips To Buy In 2018

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Each one pays a fully franked dividend. Each one has not only grown its profits, but has also grown its dividend. One increased it by a whopping 33%, while another trades on a grossed up (fully franked) dividend yield of almost 7%.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of VOLPARA FPO NZ. The Motley Fool Australia has recommended Zenitas Healthcare Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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