3 growing healthcare shares I want in my portfolio

Thanks to technological advancements and the expected growth in demand for healthcare services over the next couple of decades, I think the healthcare sector is a great place to look for buy and hold investments.

This certainly is the case at the small end of the market where a number of companies are aiming to disrupt the status quo.

Three that I think have a lot of potential are listed below. Here’s why I like them:

Paragon Care Ltd (ASX: PGC)

Paragon Care is a provider of integrated services to the health and aged care markets. It has been on a shopping spree this year making no less than 10 acquisitions which are expected to be significantly accretive to earnings. The most recent acquisition was the NZ$54.4 million purchase of REM Systems in New Zealand. While there are integration risks that ought to be considered, if management successfully integrates these acquisitions then I believe Paragon Care will be positioned perfectly to deliver above-average growth for the foreseeable future.

Volpara Health Technologies Ltd (ASX: VHT)

Volpara Health Technologies is a New Zealand-based company specialising in breast imaging analytics and analysis software. Its software is regulatory cleared, patent protected, clinically validated, and used in 36 countries. It recently released its first-quarter results which revealed further growth in its share of the U.S. market. At present 3.7% of all women screened in the United States are handled with its software. Management aims to grow its share to 9% by the end of the financial year. I expect this and its increasing revenue per screening will lead to further strong revenue growth this year. In FY 2018 annual recurring revenues rose an impressive 223%.

Zenitas Healthcare Ltd (ASX: ZNT)

This home care and health services company is one which I expect to benefit greatly from Australia’s ageing population. Increasingly more older people are wanting to live at home as long as they can instead of in an aged care home. This is where I see Zenitas and its home care business profiting. Especially after the recent Federal budget pledged $1.6 billion over four years for 14,000 people to stay in their homes rather than move into nursing homes.

The ASX small cap up 285% with no sign of stopping...

One Australian company has developed a state of the art device that's revolutionizing hospitals all over the world. Even better, this device is so profitable that the company rakes in 90% margins. That's a lot of cash. So no wonder the stock's up 285% since 2008 – with no signs of stopping...

To discover the name and code, simply click the link below. You'll discover our expert's #1 medical technology pick... and you can decide for yourself whether to get invested today.

Click here to claim your free report.

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 Paragon Care Limited and 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.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.