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I think these 2 ASX healthcare shares are in the buy zone

At times like these, I think the best thing for investors to do is to look beyond the short term volatility and focus on the future.

And one area of the market which I think is well-positioned for long term growth is the healthcare sector.

Two healthcare shares that I would buy for the long term are listed below:

Nanosonics Ltd (ASX: NAN)

Nanosonics is an infection control specialist which I think has very strong long-term growth potential. This is thanks to the planned launch of several new products targeting unmet needs and its core trophon EPR product. The latter provides healthcare organisations with a safe and simple way to prevent ultrasound probe cross-infection.

As of its half year update, its global installed base had grown 17% over the last 12 months to 22,500 units. This is still well short of its total addressable market estimated to be 120,000 units. This is good for two reasons. Not only does the company earn revenue from unit sales, it also generates recurring revenues from the consumables the devices require.

ResMed Inc. (ASX: RMD)

A second healthcare share to consider buying is ResMed. It has been growing at a very strong rate over the last decade and has become one of the world’s leading sleep treatment companies. Pleasingly, this strong form has continued in FY 2020. During the first half the company delivered a 22% lift in operating profit to US$368.9 million.

Whilst its growth could take an indirect hit from the coronavirus outbreak in the second half, outside this, I’m confident that it is well-placed to continue its positive trajectory for many years to come. This is due to its world-class product portfolio and the massive number of undiagnosed sleep apnoea sufferers globally. The company estimates that there are upwards of ~1 billion people impacted by sleep apnoea globally. The vast majority of these are currently undiagnosed.

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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 Nanosonics Limited. The Motley Fool Australia has recommended Nanosonics Limited and ResMed Inc. 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.

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