3 small-cap healthcare shares on my shopping list

While the majority of investors out there will be very familiar with healthcare shares such as Ramsay Health Care Limited (ASX: RHC) and CSL Limited (ASX: CSL), I suspect they will be less familiar with some of the rising small-cap healthcare shares on the local market.

Here are three which I’m tipping to have a bright future:

Lifehealthcare Group Ltd (ASX: LHC)

LifeHealthcare is a distributor of high-end medical devices in Australia and New Zealand. Due to the nature of its business there had been concerns over the impact that reforms to the Prostheses List would have on its performance. The good news here is that the impact is minimal. So much so, management was able to reaffirm its full-year guidance of high single to low double digit growth in revenue and earnings. As a result, its shares are nearing a 52-week high now. But even though its shares have rallied I think they are great value and especially attractive for income investors. At the current share price they provide a trailing partially franked 5.1% dividend.

Volpara Health Technologies Limited (ASX: VHT)

I’m a big fan of this exciting digital health company which is focused on the early detection of breast cancer. Volpara recently provided the market with a positive trading update which revealed that annual recurring revenues have grown 138% on the prior corresponding period to NZ$2.6 million as of December 15. Pleasingly, this growth is expected to accelerate from here, with management confident that it is on course to meet or exceed its 200% target for the full year.

Zenitas Healthcare Ltd (ASX: ZNT)

This home care and health services company could have a very bright future ahead of it in my opinion. The National Healthcare Reform may have been a negative for some healthcare companies, but it has been a big positive for Zenitas. The Reform aims to push the burden of healthcare services from hospitals and into primary care. While there are risks that its acquisitions may not integrate as well as hoped, I’m confident that its experienced management team will make a success of its recent acquisition spree.

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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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