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Why I would buy these top healthcare shares today

The healthcare sector was one of the better performing areas of the market last year and I expect it to be similarly strong again this year due to the quality companies within it.

Two healthcare shares which I think would be great options for investors today are listed below. Here’s why I like them:

CSL Limited (ASX: CSL)

Despite the fact that this biotherapeutics company’s shares beat the market last year with a 41% return, I still believe they have the potential to outperform the market again this year due to the strong performance of its leading immunoglobulin business and soon to be profitable Seqirus vaccine business.

Ultimately, I believe these businesses and the strong underlying demand it is experiencing has put the company in a position to deliver above-average long-term profit growth. I’m not alone in thinking this. A broker note out of Credit Suisse in December revealed that the broker had an outperform rating and $155 price target on CSL’s shares.

Ramsay Health Care Limited (ASX: RHC)

Although 2017 was a bit of a disappointment for this leading private hospital operator Ramsay, I think its recent share price weakness has left its shares trading at a very attractive price for a buy and hold investment. Due to ageing populations and increased chronic disease, I expect Ramsay to deliver above-average organic earnings growth for at least the next decade.

Furthermore, due to its strong balance sheet I believe Ramsay has the option to accelerate its growth inorganically through expansions and acquisitions. While the same tailwinds should also be a boost for rival Healthscope Ltd (ASX: HSO), I think the quality of its hospitals, its global footprint, and experienced management team make Ramsay the better pick.

As well as CSL and Ramsay, I think these growing blue chip shares would be great investments this year.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Ramsay Health Care Limited. 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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