Why PolyNovo and these ASX healthcare shares could be long term market beaters

PolyNovo Ltd (ASX:PNV) and these ASX healthcare shares could be long term markets beaters for Australian investors. Here's why…

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

I think the healthcare sector is a great place to invest with a long term view due to the favourable tailwinds that it is experiencing.

These include ageing populations around the globe, increased chronic disease burden, and better technologies. But with so many options for investors to choose from, which ones should you be buying?

Below are three ASX healthcare shares I believe could provide stellar returns for investors over the long term:

Nanosonics Ltd (ASX: NAN)

The first healthcare share to consider buying is Nanosonics. It is an infection prevention specialist best known for its trophon EPR disinfection system for ultrasound probes. It is also the first high level disinfection system for ultrasound probes that is effective against high-risk, cancer causing strains of Human Papilloma Virus. This has gone down very well with healthcare institutions, leading to its installed base growing at a rapid rate over the last few years. The good news is that there's still a large addressable market for it to grow into in the coming years. This should be supported by the launch of new products targeting unmet needs which have similar market opportunities. If they are anywhere near as successful, Nanosonics will have a very bright future ahead of it.

PolyNovo Ltd (ASX: PNV)

Another healthcare share which I think could have a bright future ahead of it is PolyNovo. It is the medical device company behind the NovoSorb Biodegradable Temporising Matrix (BTM) product. This synthetic polymer was developed at CSIRO and is used by clinicians to treat serious burn and skin trauma patients. It can be used in surgical procedures and will eventually biodegrade safely and be excreted by the body. The company's current target market has a sizeable $1.5 billion addressable opportunity. However, management is looking to expand BTM's use into the hernia and breast treatment markets. This would lift its addressable market to a total of $7.5 billion if successful.

Ramsay Health Care Limited (ASX: RHC)

A final healthcare share to look at is Ramsay Health Care. This global private hospital operator currently has 480 facilities across 11 countries. Although the near future is not going to be easy for Ramsay due to both the pandemic and general tough trading conditions in the private hospital space, I believe its long term outlook is very positive. This could make it worth considering a long term and patient investment in its shares. Especially given the aforementioned tailwinds that the sector is experiencing. This is likely to lead to a strong increase in demand for its services over the next decade and beyond.

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 and POLYNOVO FPO. The Motley Fool Australia has recommended Nanosonics Limited and Ramsay Health Care 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.

More on Growth Shares

A woman with strawberry blonde hair has a huge smile on her face and fist pumps the air having seen good news on her phone.
Growth Shares

Brokers name 5 fantastic ASX growth shares to buy in June

Looking for growth? Check out these stocks that analysts are bullish on.

Read more »

A woman smiles as she sits on the bus using her phone and listening to music through headphones.
Growth Shares

3 ASX growth stocks I'd buy with $5,000

Growth stocks can add some excitement to your portfolio.

Read more »

rising leisure asx share price represented by three happy faces on slot machine
Growth Shares

Buy 'one of the highest quality' growth shares on the ASX 200

An expert has just revealed why you should bet on this ASX growth stock.

Read more »

A woman holds her hand out under a graphic hologram image of a human brain with brightly lit segments and section points.
Growth Shares

1 ASX growth stock that turned $10,000 into $21,000 in less than 2 years

The AI boom continues its ripple effects on the ASX.

Read more »

A fit man flexes his muscles, indicating a positive share price movement on the ASX market
Growth Shares

4 ASX growth shares to buy to supercharge your portfolio in June

Analysts think these exciting growth stocks are in the buy zone.

Read more »

Kid on a skateboard with cardboard wings soars along the road.
Opinions

ASX growth stock on the cusp of profitability: My multibagger pick

I'm hoping to buy this small-cap stock and turn $5,000 into $20,000.

Read more »

A white and black robot in the form of a human being stands in front of a green graphic holding a laptop and discussing robotics and automation ASX shares
Technology Shares

Joining the revolution: How I'd invest in ASX AI shares right now

Advances in artificial intelligence (AI) could usher in a new industrial revolution. Here’s how you can invest in it.

Read more »

a man in a business suite throws his arms open wide above his head and raises his face with his mouth open in celebration in front of a background of an illuminated board tracking stock market movements.
Growth Shares

2 ASX growth shares with legit potential to outperform the market

Analysts are tipping these shares to deliver returns far greater than historical averages.

Read more »