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3 healthcare shares I want in my portfolio

There are few areas of the market that stand to benefit more from population growth and ageing populations than the healthcare sector.

And while there are a great number of options to choose from in the sector, three of the best in my opinion are listed below. Here’s why I like them:

CSL Limited (ASX: CSL)

CSL Limited is a global biotechnology manufacturer that researches, develops, and markets products to treat and prevent rare and serious diseases. Due to the overall quality of the company and the solid long-term growth prospects that its core plasma business and growing Seqirus influenza business give it, I think CSL would be a great buy and hold investment option for investors. Its shares do trade at a significant premium to the market-average, though, so there is always a risk that underperformance could lead to a selloff. But I remain confident that CSL can continue growing its earnings at an above-average rate for the foreseeable future.

ResMed Inc. (ASX: RMD)

ResMed is a specialist in the sleep apnoea and chronic respiratory disease treatment market and has been growing its earnings at an impressive rate this year. In its latest quarterly update the company revealed a quarterly profit of US$132.5 million, up 32% on the prior corresponding period. With the sleep treatment market tipped to grow meaningfully over the next decade and ResMed holding an industry-leading position within it, I believe it can continue to grow earnings at an above-average rate for some years to come.

Volpara Health Technologies Ltd (ASX: VHT)

Investors that are willing to dip into the small cap space might want to consider taking a look at this healthcare technology company. Volpara provides an impressive piece of technology that offers game-changing breast imaging analytics and analysis solutions. The technology has been making waves in the U.S. and its market share has grown ahead of schedule to 3.2% at the last count. Impressively, management believes it can win a 9% share of the market in FY 2019. If it achieves this then it will almost certainly mean another year of impressively strong recurring revenue growth.

As well as CSL, ResMed, and Volpara, I think investors should be looking at these four top stocks this month. I'm tipping them to outperform the market in FY 2019.

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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 VOLPARA FPO NZ. The Motley Fool Australia has recommended ResMed Inc. 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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