I think the healthcare sector is one of the best areas of the share market to look for long term investments.
This is because of favourable tailwinds such as ageing populations, improvements in treatments, and increased chronic disease burden, which I believe will drive strong demand for healthcare services over the next decade or two.
Three of my favourites in the sector are listed below. Here's why I think they could be in the buy zone:
Cochlear Limited (ASX: COH)
One top healthcare share to consider buying this month is this leading global hearing solutions company. Thanks to strong demand for its products, in February Cochlear posted a 16% lift in half year profits. I expect similarly strong growth over the next decade thanks to the quality of these products, its investments in R&D, its global distribution network, and the ageing population tailwind.
CSL Limited (ASX: CSL)
My favourite option in the healthcare sector continues to be this leading biotherapeutics company. This is because I believe its CSL Behring and Seqirus businesses are well-positioned to deliver strong earnings growth over the next decade due to their leading products, lucrative product pipelines, and significant investment in research and development (R&D). During the first half of FY 2019, CSL spent a whopping US$391 million on R&D. I believe this level of investment and its talented management team will keep the company at the forefront of its key markets for a long time to come.
ResMed Inc (ASX: RMD)
A final healthcare share to look at buying this month is ResMed. As with the other two, I think the sleep treatment-focused medical device company would be a great buy and hold investment option. This is because the sleep treatment market has been tipped to grow strongly over the next decade and ResMed has carved out a leadership position within it thanks to the quality of its cloud-connected products.
