MENU

3 healthcare shares that could bring your portfolio to life

With demand for healthcare services expected to rise strongly over the next couple of decades as populations age and better treatments are developed, I think it is well worth investors having exposure to the healthcare sector.

While there are many quality shares to choose from in the sector, three of my favourites are listed below:

CSL Limited (ASX: CSL)

I feel that this global biotech star is arguably the highest quality company on the local share market and a great buy and hold option for investors. While its shares have run hard over the last 12 months, they have pulled back from their all-time high in recent weeks. I think this has potentially created a buying opportunity for investors. Furthermore, although its shares trade at a premium to the market average, I think that the overall quality of its businesses and their strong long-term growth potential go some way to justifying this.

ResMed Inc. (ASX: RMD)

Another top healthcare share that I think would be a great investment is ResMed. Due to the quality of its products I believe this sleep treatment company is in a great position to win a growing share of a market that is tipped to grow strongly in the future. In addition to this, I expect the company’s focus on the fast-growing cloud-connected medical device market to support the growth of its core business.

Volpara Health Technologies Ltd (ASX: VHT)

Investors looking for exposure to the small end of the healthcare sector might want to consider this health technologies company. Volpara provides an increasingly popular breast imaging analytics and analysis software platform which commanded a 3.7% share of the U.S. market in FY 2018. Pleasingly, management appears confident that it will more than double its share to 9% in FY 2019. I expect this to lead to further growth in its annual recurring revenues (ARR). In FY 2018 its ARR grew at an impressive 223% year-on-year.

If you like growth stars like Volpara then I think you'll love these stars of the future.

The Disruptors: 3 Revolutionary Aussie Companies to Back for 2018

We’re living in one of the most exciting times in investing history. Innovation and a booming culture of entrepreneurship are constantly creating new companies with the potential to make forward-thinking investors very rich. Now more than ever, one small, smart investment could make a huge difference to your wealth.

That’s why at The Motley Fool we’ve been scrutinizing the ASX to uncover the kinds of companies that we believe could turn into the next Atlassian.

We’ve found three exciting companies that we believe re poised to perform in the new year. Click here to uncover these ideas!

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.

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.