One area of the market that I am especially bullish on in the long-term is the healthcare sector.
This is because a combination of factors including ageing populations, increased chronic disease burden, and better treatment options, could potentially lead to strong demand for healthcare services over the next decade or two.
This could be great news for these three small-cap shares:
1300 Smiles Limited (ASX: ONT)
I think it is fair to say that conditions in the dental industry are reasonably tough at the moment. The Australian Dental Association of Queensland recently confirmed that 65% of the population do not visit the dentist for their two-yearly check-ups. However, 1300 Smiles has taken this opportunity to expand its network through acquisitions at attractive prices. I believe this has positioned it well for growth when conditions improve. Investors may, however, want to hold out for its half-year results next month before investing.
Bioxyne Ltd (ASX: BXN)
This life sciences and health products company recently launched three health and wellness products into the lucrative South East Asia market. I believe one of these products in particular has a lot of potential in a market that is becoming increasingly health-conscious. The company’s BK18 dairy-based nutritional health drink includes an immune boosting probiotic and a range of key vitamins. Initial orders have been strong ahead of the launch of its marketing campaign.
Zenitas Healthcare Ltd (ASX: ZNT)
One of my favourite small-cap shares on the ASX is Zenitas Healthcare. The home care and health services company listed on the ASX last year and has already caught the eye of a number of fund managers including WAM Microcap Ord (ASX: WMI). I don’t think it is hard to see why WAM has taken a liking to Zenitas. With the National Healthcare Reform aiming to push the burden of healthcare services from hospitals into primary care, Zenitas is in a great position to profit.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended 1300SMILES Limited and 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.