Due to favourable tailwinds such as ageing populations, improvements in treatments, and increased chronic disease burden, I believe the healthcare sector is a great place to consider making a buy and hold investment.
Whilst there are a lot of quality options in the sector right now, three of my favourites are listed below. Here's why I think they could be in the buy zone:
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 CSL's portfolio, its growing plasma collection network, and the company's material investment in research and development, I believe it is well-positioned to continue delivering above-average earnings growth over the next few years.
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. As of its last update, Nanosonics had an installed base of 19,310 units, up 20% on the prior corresponding period. Whilst this is a large number, it is still only scratching at the surface of its addressable market of 120,000 units. Due to the quality of the product, I expect more market share gains in the future, underpinning strong earnings growth which is likely to be supported by the launch of new products.
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 achieve this through its 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.
