3 small cap healthcare shares to watch

One area of the share market that I think has bright long-term growth prospects is the healthcare sector.

I believe the sector is home to several high quality up and coming companies which investors should be better acquainted with.

Three that have caught my eye are listed below. Here’s why I like them:

Auscann Group Holdings Ltd (ASX: AC8)

While AusCann will more often than not be categorised solely as a cannabis company, at its heart it is a healthcare company. And one which I think has enormous potential given its industry-leading standing and the sizeable market it is targeting. While there is still a long road ahead for the company, I am optimistic that it is positioned perfectly to disrupt the Australian chronic pain management market within the next couple of years.

Volpara Health Technologies Ltd (ASX: VHT)

Volpara Health Technologies is a fast-growing breast imaging analytics and analysis product provider which I think has enormous potential. Thanks to the increasing popularity of its technology, the company has been growing its share of the U.S. market at a quicker than expected rate. At the last count, approximately 3.2% of all women screened in the United States for breast cancer were contracted to Volpara’s software. Management is targeting a 9% share of the market by the end of FY 2019 and I would not be surprised to see it achieve this. This should lead to strong top line growth.

Zenitas Healthcare Ltd (ASX: ZNT)

Last month this home care and health services company provided a trading update which revealed that it is on course to achieve its FY 2018 EBITDA guidance of between $13 million and $13.5 million. This was closely followed by the announcement of two earnings accretive acquisitions that I believe were done at a great price and offer solid growth prospects. In light of this, I think investors ought to consider Zenitas as a long-term buy and hold investment.

These aren't the only small cap shares that could be destined for big things. These top small caps could also have blue chip futures.

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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 VOLPARA FPO NZ. 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.

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