One area of the market which I think would be a great place to invest over the long term is the healthcare sector.
This is due to favourable tailwinds such as ageing populations and increased chronic diseases burden, which I expect to lead to increasing demand for healthcare services.
Three top healthcare shares that I would buy are listed below:
Cochlear Limited (ASX: COH)
I think that this leading global hearing solutions company would be a great long-term investment. This is because I believe the company will benefit greatly from the ageing population tailwind. As people age their hearing will invariably fade and require some form of assistance. As Cochlear’s products are amongst the best on the market and the company has a wide global distribution network, I believe it is well-placed to capture this growing demand. This should allow the company to continue growing its earnings at an above-average rate long into the future.
CSL Limited (ASX: CSL)
Not only would I class this global biotech giant as the best buy and hold option in the healthcare sector, but I would go so far as to say it is the best on the Australian share market. This is due to the quality of the company, its products, and its management team. In addition to this, the company has a lucrative pipeline of therapies under development which are likely to bolster its growth over the long term. Its shares may appear expensive in comparison to the market average, but I believe its positive long term outlook justifies this premium.
Nanosonics Ltd (ASX: NAN)
Another healthcare share which I think has a very bright future ahead of it is Nanosonics. It is a leading infection control specialist best-known for its trophon EPR product, which is a best in class disinfection system for ultrasound probes. Whilst this product alone has very strong growth potential due to its sizeable market opportunity and the increasing sales of the consumables that it requires, management has its eyes on other unmet needs and plans to launch several new products in the short to medium term. If these products are half as successful as trophon EPR, then Nanosonics could deliver strong earnings growth for a long time to come.
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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. owns shares of Cochlear Ltd., CSL Ltd., and Nanosonics Limited. The Motley Fool Australia has recommended Cochlear Ltd. and Nanosonics Limited. 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.