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Grow your wealth with these quality ASX healthcare shares

Doctor pressing digitised screen with array of icons including one entitled health insurance
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With populations around the world getting older and chronic disease burden increasing, demand for healthcare services is expected to rise strongly over the coming decades.

In light of this, I think the healthcare sector could be a great place to look for long term investments.

But which healthcare shares should you buy? Three that I feel could be long-term market beaters are listed below. Here’s why I like them:

PolyNovo Ltd (ASX: PNV)

The first ASX healthcare share to buy is PolyNovo. It is the medical device company behind the NovoSorb Biodegradable Temporising Matrix (BTM) product. This wound dressing product is designed to treat full-thickness wounds and burns and has a sizeable $1.5 billion addressable market. However, management isn’t resting on its laurels. It is looking to expand its usage into other markets. If this is successful, it would add a further $6 billion to its addressable market.

Pro Medicus Limited (ASX: PME)

Another ASX healthcare share that I think would be a top option is Pro Medicus. It is a leading provider of radiology IT software and services to hospitals, imaging centres, and healthcare companies. Due to increasing demand for its software from leading healthcare institutions, Pro Medicus has been growing its earnings at a rapid rate in recent years. This even continued in FY 2020 despite the pandemic. Over the 12 months, the company’s underlying profit before tax increased 33.4% to $30.24 million. Pleasingly, due to its high quality software, sizeable market opportunity, and burgeoning sales pipeline, I believe Pro Medicus can continue its positive form for some time to come.

Ramsay Health Care Limited (ASX: RHC)

A final healthcare share to buy is Ramsay Health Care. Although trading conditions remain tough in the private hospital sector because of the pandemic’s impact on elective surgeries, I expect a swift rebound once the crisis passes. Looking further ahead, I believe Ramsay’s long term outlook is very positive. This is due to the aforementioned ageing global population and increased chronic disease burden. I expect this to lead to a sustained increase in demand for its services over the 2020s and beyond. Together with potential earnings accretive acquisitions, I believe Ramsay is well-placed for long term growth.

These 3 stocks could be the next big movers in 2020

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In this FREE STOCK REPORT, Scott just revealed what he believes are the 3 ASX stocks for the post COVID world that investors should buy right now while they still can. These stocks are trading at dirt-cheap prices and Scott thinks these could really go gangbusters as we move into ‘the new normal’.

*Returns as of 6/8/2020

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 and recommends Pro Medicus Ltd. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of POLYNOVO FPO. The Motley Fool Australia has recommended Pro Medicus Ltd. 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.

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