MENU

Why I would buy these small-cap healthcare shares

I believe that one of the best areas of the market to make a long-term buy and hold investment is the healthcare sector.

This is due largely to the positive tailwinds the sector is experiencing from ageing populations and increased chronic disease burden.

With that in mind, I have picked out two of my favourite small-cap shares in the space which I think would be great long-term investments. They are as follows:

Nanosonics Ltd. (ASX: NAN)

I think that this infection control specialist is a great option for investors today. Thanks to its increasingly popular trophon EPR product used for cleaning ultrasound probes, I believe Nanosonics is capable of growing its earnings at an explosive rate over the coming years. Despite being regarded as the best in its class, trophon EPR still only has an estimated global market share of just 12%. I believe it is positioned perfectly to gobble up market share over the next decade. Furthermore, the company is aiming to move away from being a one-trick pony and has a couple of other exciting products in development. If they are half as successful as trophon EPR, they will add a lot of value to the company.

Zenitas Healthcare Ltd (ASX: ZNT)

This home care and health services company hasn’t been listed on the local market very long but has been a real success story since its IPO. Its shares are currently trading at $1.28, compared to its IPO price of $1.00 just over a year ago. Investors appear to be bullish on its prospects due to the growth through acquisition opportunities it has in a highly fragmented industry and the positive impact of the National Healthcare Reform. The Reform aims to push the burden of healthcare services from hospitals and into primary care. Great news for Zenitas, but perhaps not so for a hospital operator like Healthscope Ltd (ASX: HSO).

Finally, here are three more shares which could prove to be excellent buy and hold investments.

Top 3 ASX Blue Chips To Buy In 2018

For many, blue chip stocks mean stability, profitability and regular dividends, often fully franked..

But knowing which blue chips to buy, and when, can be fraught with danger.

The Motley Fool’s in-house analyst team has poured over thousands of hours worth of proprietary research to bring you the names of "The Motley Fool’s Top 3 Blue Chip Stocks for 2018."

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%.

The names of these Top 3 ASX Blue Chips are included in this specially prepared free report. But you will have to hurry. Depending on demand – and how quickly the share prices of these companies moves – we may be forced to remove this report.

Click here to claim your free report.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Nanosonics Limited. 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.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.