One of the best performing areas of the local share market over the last five years has been the healthcare sector.
During this time the S&P/ASX 200 Health Care (Index: ^AXHJ) (ASX: XHJ) has put on an impressive gain of over 116%.
Whilst there's no guarantee that it will be as successful over the next five years, I believe it is well placed to outperform the market due to strengthening demand for healthcare services on the back of ageing populations and increased chronic disease burden.
Three healthcare shares that I would consider snapping up today are as follows:
Cochlear Limited (ASX: COH)
As hearing generally fades as we age, I believe this hearing solutions company will benefit from increasing demand for its products over the next couple of decades as the global population ages. I expect that this demand and its industry-leading products could put Cochlear in a position to continue delivering above-average profit growth for a long time to come.
ResMed Inc. (CHESS) (ASX: RMD)
I think this sleep apnoea and chronic respiratory disease treatment specialist would be a great option for investors. Like Cochlear, ResMed is a leader in a market that is expected to grow meaningfully over the next couple of decades. I think this will allow ResMed to continue delivering strong earnings growth for many years to come.
Zenitas Healthcare Ltd (ASX: ZNT)
At the small end of the market I think that this home care and health services company is well worth a closer look. Especially given how it could be one of the biggest winners from the National Healthcare Reform. The Reform aims to push the burden of healthcare services from hospitals into primary care providers like Zenitas. This could provide the company with sizeable organic growth in the future.
