Due to a number of factors including ageing populations and increased chronic disease burden, I think the healthcare sector is a great place to look for long term investments.
Listed below are the three shares that I think are the best buy and hold options in the sector right now. They are as follows:
Cochlear Limited (ASX: COH)
One company that stands to benefit greatly from the ageing population theme is Cochlear. As people age their hearing will more often than not deteriorate to the point that they will require some form of hearing assistance. Due to Cochlear’s industry leading products, significant investment in R&D, and global distribution network, I believe it is well-positioned to benefit from this increasing demand and likely to continue to grow earnings at a solid rate for many years to come.
CSL Limited (ASX: CSL)
My favourite buy and hold investment option on the Australian share market would have to be this global biotech company. I believe it is one of the highest quality companies Australia has to offer and more than capable of continuing its above-average earnings growth for the foreseeable future. This is due largely to its strong core business, expanding plasma collection network, and pipeline of lucrative products. In addition to this, a note out of Credit Suisse this week revealed that immunoglobulin demand has been strong. I expect this to underpin its earnings growth in FY 2019.
ResMed Inc. (ASX: RMD)
The third and final buy and hold option is this leading sleep treatment focused medical device company. The sleep apnea device market is expected to grow significantly over the next decade, which I believe puts ResMed in a strong position to continue its impressive earnings growth for the foreseeable future. Demand for its products has been strong in FY 2019, leading to the company recently posting a 23% increase in first quarter net income.
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Cochlear Ltd. and 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.