Over the last five years the healthcare sector has vastly outperformed the benchmark ASX 200.
During this time the S&P/ASX 200 Health Care index has provided a gain of 108%, compared to the benchmark index's gain of 20%.
Whilst I don't expect this level of outperformance to continue over the next five years, due to the quality on offer in the sector and favourable tailwinds, I believe it could still generate above-average returns for investors.
With that in mind, here are three healthcare shares I would buy today:
CSL Limited (ASX: CSL)
I think this global biotherapeutics company is arguably the best healthcare share on the Australian market and a great buy and hold option. Thanks to the quality of its portfolio, growing plasma collection network, and significant investment in research and development, I believe CSL is well-positioned to continue delivering above-average earnings growth for the foreseeable future.
Nanosonics Ltd (ASX: NAN)
Another top healthcare share to consider is this infection control specialist. Nanosonics is the company behind the popular trophon EPR product, which is a best in class disinfection system for ultrasound probes. At the last count Nanosonics had an installed base of 19,310 units, up 20% on the prior corresponding period. This compares to an addressable market of 120,000 units. Due to the quality of the product, I expect more market share gains in the coming years, underpinning strong earnings growth. In addition to this, the launch of new products in the coming years could also support its growth and diversify its business.
ResMed Inc (ASX: RMD)
ResMed is a medical device giant focused on creating innovative solutions that treat and keep people out of the hospital. The company aims to do this through a portfolio of cloud-connected devices which care for people with sleep apnoea, chronic obstructive pulmonary disease, and other chronic diseases. Due to the quality of its products and the growing addressable market, I believe ResMed is well-positioned to continue being a market beater over the next decade.
