When it comes to making a buy and hold investment I think the healthcare sector is one of the best areas of the market to start your search.
After all, with the world’s population both growing and ageing, demand for healthcare services is expected to increase significantly over the next couple of decades.
In light of this, here are three healthcare shares that I think investors ought to consider buying today:
CSL Limited (ASX: CSL)
I believe that this biotherapeutics company is not only the best buy and hold option in the healthcare sector, but perhaps even the whole market. Especially now its relatively new Seqirus influenza business is contributing strongly to its overall results. Its performance was the highlight of its strong first-half result in my opinion and gives me confidence to believe that the company is capable of growing earnings at an above average rate for many more years.
Pro Medicus Limited (ASX: PME)
Pro Medicus is a fast-growing health imaging IT provider which I think could have a very bright future ahead of it thanks to its impressive Visage 7 technology. Visage 7 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. I believe this is a testament to the product’s quality and expect more deals of this nature in the future.
Zenitas Healthcare Ltd (ASX: ZNT)
I think this home care and health services company is perfectly positioned for long-term growth thanks to favourable reforms in the healthcare sector. These reforms aim to aim to push the burden of healthcare services out of hospitals and into primary care providers such as Zenitas. While Zenitas hasn’t been listed on the ASX for long, I’ve been impressed with its performance thus far. Last month the company delivered a 51.5% increase in first-half EBITDA.
Finally, here are a few more top shares that I think would be perfect buy and hold investments. Do you own them yet?
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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 and has recommended PRO Medicus Ltd. 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 Scott Phillips.