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3 growing healthcare shares I would buy today

Healthcare

The healthcare sector has been one of the best performing areas of the market over the last five years.

During this time the S&P/ASX 200 Health Care (Index: ^AXHJ) (ASX: XHJ) has climbed an astonishing 110%, compared to the S&P/ASX 200’s 23% gain.

Due to the tailwinds that the sector is experiencing I believe there’s every chance that this outperformance will continue over the next five years.

Which could make it a great time to snap up one of these growing healthcare shares. Here’s why I like them:

Lifehealthcare Group Ltd (ASX: LHC)

I think this distributor of high-end medical devices in Australia and New Zealand could be a great option for investors. There had been concerns that it could have been greatly impacted from reforms to the Prostheses List, but the impact is only expected to be minimal. In light of this, management was recently able to reaffirm its FY 2018 guidance for high single to low double digit growth in both revenue and earnings.

Nanosonics Ltd. (ASX: NAN)

This infection control specialist has an increasingly popular trophon EPR product which is used for cleaning ultrasound probes. As the product is wholly effective, environmentally friendly, and regarded as the best in its class, I suspect it is only a matter of time until its market share grows significantly. At present it has an estimated global market share of 12%. Management also aims to diversify its business by launching a couple of more products in the near future.

Pro Medicus Limited (ASX: PME)

I think that this leading health imaging IT provider could have a bright future thanks to its Visage 7 technology. The impressive piece of technology allows radiologists and physicians to visually assess a patient’s complete imaging history, along with the flexibility to access, finely choreograph, and immediately display any combination of imaging components. Last year the company announced a major seven-year deal with Yale New Haven Health that will see Visage 7 implemented across all of its radiology departments.

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As of 2.11.2020

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 and PRO Medicus 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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