I continue to believe that the healthcare sector is a great place to consider long-term buy and hold investments due to a number of favourable industry tailwinds.
With that in mind, here are three top healthcare shares that I think are in the buy zone today and could provide strong returns for investors over the next 10 years:
CSL Limited (ASX: CSL)
CSL is one of the world's leading biotherapeutics companies. I believe it is a fantastic buy and hold option due to the quality and strength of its CSL Behring and Seqirus businesses. CSL Behring is the global leader in plasma therapies and Seqirus is the second biggest influenza vaccines company globally. In FY 2019 the two businesses continued to shine, with CSL Behring reporting an 11% jump in total revenue to US$7,343 million and Seqirus posting a 12% increase in total revenue to US$1,196 million. Due to increasing demand, the quality of its products, and lucrative development pipeline, I expect more of the same in FY 2020 and beyond.
Nanosonics Ltd (ASX: NAN)
Another top buy and hold option in the healthcare sector is Nanosonics. It is a leading infection control specialist which has carved out a leadership position in ultrasound probe disinfection. Whilst this has led to the company's trophon EPR system growing its footprint materially over the last few years, it is still only scratching at the surface of its global market opportunity. I expect market share gains and strong growth in recurring revenues from the consumables the system requires to drives above-average growth for a number of years to come. This should be supported by the upcoming launch of secret new products targeting unmet needs.
Pro Medicus Limited (ASX: PME)
Pro Medicus is a leading provider of a full range of radiology IT software and services to hospitals, imaging centres, and healthcare groups worldwide. It experienced strong demand for its offering again in FY 2019, leading to it reporting a 91.9% increase in full year profit to $19.1 million. Given the quality of its products and its sizeable market opportunity, I believe Pro Medicus is capable of continuing this strong form for some time to come.
