In 2018 the healthcare sector was once again the place to invest your money.
During the 12 months the S&P/ASX 200 Health Care (Index: ^AXHJ) (ASX: XHJ) put on a gain of 17% compared to a decline of around 7% for the benchmark ASX 200 index.
While I wouldn't necessarily expect the sector to rise by this level again this year, I think there are a number of healthcare shares that have the potential to provide market-beating returns.
Three healthcare shares that I would buy are listed below:
Cochlear Limited (ASX: COH)
With its shares down 16% from their 52-week high, I think this hearing solutions company could be worth considering today. Due to the quality of its products and its growing distribution footprint, I believe Cochlear is well-positioned to benefit from the expected increase in demand for hearing assistance products over the next decade due to ageing populations.
Pro Medicus Limited (ASX: PME)
This healthcare technology company's shares may have just hit an all-time high, but I don't believe it is too late to make an investment if you're prepared to hold onto its shares for the long term. Pro Medicus is a leading provider of radiology information systems (RIS), picture archiving and communication systems (PACS), and advanced visualisation solutions to healthcare organisations across the globe. Due to the quality of its software and its sizeable market opportunity, I think Pro Medicus has significant growth potential.
Volpara Health Technologies Ltd (ASX: VHT)
Another healthcare share which I think has significant growth potential is Volpara Health Technologies. It is a provider of breast imaging analytics and analysis products that improve clinical decision-making and the early detection of breast cancer. It has been growing its share of the U.S. breast screening market at an impressive rate over the last couple of years and shows no signs of slowing in FY 2019. In fact, management appears confident that an expanded sales force will mean its market share gains accelerate.
