Yesterday I wrote about how I’m very bullish on the tech sector over the long term due to the quality on offer inside it.
Another area of the market that I’m especially bullish on over the long term is the healthcare sector.
This is due my belief that ageing populations, increased chronic disease burden, and better technologies will lead to increasing demand for healthcare services over the next decade or two.
With that in mind, here are three healthcare shares that I think could be great long-term investments:
CSL Limited (ASX: CSL)
This global biotech giant has been one of the best and most consistent performers on the Australian share market over the last decade, delivering average earnings growth of 13.3% per annum and an average total shareholder return of 20.1% per annum. Due to its strong core business, expanding plasma collection network, and lucrative pipeline of products under development, I believe it is well placed to continue this solid form over the next decade.
Pro Medicus Limited (ASX: PME)
Although its shares trade on sky high multiples and therefore carry a lot of risk, I believe this healthcare technology company could still be a great long term investment. 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. There is a significant market opportunity for these systems and I expect Pro Medicus to capture a good slice of it over the long term due to the quality of its offering.
ResMed Inc (ASX: RMD)
This sleep treatment specialist’s share price has fallen heavily over the last two trading sessions after its solid second quarter result still fell short of the market’s lofty expectations. I believe the selloff was an overreaction and has created a buying opportunity for investors that are prepared to make a long-term investment. Especially given its leading position in a sleep treatment market expected to grow strongly over the next decade.
Finally, here are three more shares that could be great buy and hold investment options in February.
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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. recommends Pro Medicus Ltd. The Motley Fool Australia owns shares of and has recommended Pro Medicus Ltd. 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.