ASX 200 healthcare shares are considered great defensive shares in tough economic times. But that hasn't proven true in 2022 — at least in terms of share price growth.
The S&P/ASX 200 Healthcare Index (ASX: XHJ) is down 4.9% in the year to date. That's worse than the S&P/ASX 200 Index (ASX: XJO), which is down 3.8%.
Healthcare employs more people than any other industry in Australia, according to the new census. It's an established sector, which means good earnings and reliable dividends for shareholders.
Healthcare is also an obvious defensive play, like consumer staples, when inflation and interest rates are rising. No matter what the economy is doing, people still need healthcare and essential goods and will prioritise them in their budgets. So that's good for the earnings of ASX healthcare shares.
Healthcare also has a very big long-term tailwind with our ageing population — the older we get, the more healthcare we need. But for now, it's a sector that hasn't done much for investors in 2022.
Of course, there are always companies doing better than the bunch.
In November, these three ASX 200 healthcare shares stood out with the highest share price gains, according to S&P Global Market Intelligence data canvassing ASX healthcare stocks with a minimum market cap of $100 million.
The figures are taken from the closing price on 1 November to the closing price on 30 November.
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Fisher & Paykel Healthcare Corp Ltd (ASX: FPH)
The top-performing ASX 200 healthcare share in November was Fisher & Paykel with a 17.1% share price gain.
The stock gathered momentum for no particular reason in the middle of the month, then got a big bump when the company released its half-year results.
Bizarrely, it reported a 57% decline in profit but the share price soared 12% on the day of the release. As my colleague Brooke reported, the results were in line with previous forecasts, so perhaps investors were impressed to see the company simply deliver what it said it would in this current difficult economic climate.
The Fisher & Paykel share price closed at $22.84 on Friday, up 1.3%.
Ramsay Health Care Limited (ASX: RHC)
Ramsay Health Care was November's next best-performing ASX 200 healthcare share, up 12.3%.
The hospitals operator provided a business update on 11 November and the share price kept rising from there. Ramsay reported a 6.7% increase in revenue and a 2.3% decline in EBITDA over 1Q FY23.
The Ramsay Health Care share price finished Friday's session at $66.15, up 0.5% for the day.
Nanosonics Ltd (ASX: NAN)
The Nanosonics share price was the third-best performer among the ASX 200 healthcare shares last month. It went up 11%.
The infection control company held its annual general meeting (AGM) on 18 November. As my colleague James reported, Nanosonics revealed total revenue of $52.6 million for the four months to 31 October, up 42% on the prior corresponding period.
Nanosonics shares took a 12% smashing despite no news from the company on 21 November but rebounded to finish the month at $4.74. Perhaps that rebound resulted from some ASX investors seeing an opportunity to buy the dip.
The Nanosonics share price finished the week at $4.86, up 0.4% for the day on Friday.
