I think that one of the areas of the market with the most positive long-term outlook is the healthcare sector.
Technological advances, growing and ageing populations, and increased chronic disease burden are just a few factors that are expected to lead to solid growth in the sector over the long-term.
In light of this, I think having a little exposure to the healthcare sector is a great thing for a portfolio.
Here are three ways you could do it:
CSL Limited (ASX: CSL)
If you only have one healthcare share in your portfolio, make it CSL. I think that this biotherapeutics company's half-year result last month showed investors why it is regarded as one of the highest quality companies in Australia. Furthermore, I believe that result demonstrated the significant potential of its fledgling Seqirus influenza business. Ultimately, I feel the emergence of Seqirus should support the growth being exhibited by its core business, leading to solid profit growth over the coming years.
Pro Medicus Limited (ASX: PME)
I think that Pro Medicus' Visage 7 technology has enormous potential. The 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. Unsurprisingly, it has been attracting more and more users. One of which, Yale New Haven Health, signed a seven-year deal which will see Visage 7 implemented across all its radiology departments.
ResMed Inc. (CHESS) (ASX: RMD)
This global healthcare company specialises in the treatment of sleep apnoea and other chronic respiratory diseases. I've been very impressed at its consistently strong growth on both the top and bottom line over the last few years. One such example was that it recently reported non-GAAP income of US$143.8 million in the first-half of FY 2018, up a sizeable 39% on the prior corresponding period. I expect more of the same in the future thanks to its strong market-position, quality products, and growing cloud-based software offering.
