MENU

3 top healthcare shares I would buy this month

One area of the market that has been a consistently strong performer over the last five years is the healthcare sector.

During this time the S&P/ASX 200 Health Care index has more than doubled in value. As a comparison, the S&P/ASX 200 is up approximately 7.7%. Both figures exclude dividends.

While I’m not convinced this level of outperformance will continue over the next five years, I do think that rising healthcare demand will allow at least some level of outperformance.

Because of this, I think it is well worth having a little exposure to the sector.

Three shares worth considering are listed below. Here’s why I like them:

CSL Limited (ASX: CSL)

If you only buy one healthcare share I would suggest you make it CSL. I think that this biopharmaceutical giant is one of the highest quality businesses on the Australian share market with strong long-term growth prospects from its expanding plasma collection network and fledgling influenza business. Its shares do trade at a premium to the market average, but I believe it is more than justified.

ResMed Inc. (ASX: RMD)

Another high-quality healthcare share that I would consider this month is ResMed. It is one of the world’s leading sleep treatment companies and recently announced its first quarter results. The company posted a 12% lift in revenue to US$588.3 million in the September quarter and a 23% jump in net profit to US$105.7 million. With the sleep treatment market tipped to grow strongly over the next decade, I believe ResMed is well-positioned to continue its positive form for a long time to come.

Volpara Health Technologies Ltd (ASX: VHT)

If you’re interested in small cap shares then Volpara could be a great option. It is a healthcare technology company that provides breast imaging analytics and analysis software. Last month the company provided an update on its first quarter performance. According to the release, Volpara saw cash received from customers jump 124% on the prior corresponding period. In addition to this, its share of the U.S. breast screening market grew from 3.7% to 5.6% during the quarter. This puts it on track to hit its 9% target by the end of FY 2019.

Looking for more investment ideas for this month? Then don't miss out on these growth stars.

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.