The healthcare sector certainly has been the place to invest in 2017. As of yesterday's close, the S&P/ASX 200 Health Care (Index: ^AXHJ) (ASX: XHJ) was up a staggering 17.6% year-to-date.
Despite this strong start to the year, I still believe there are plenty of investment opportunities available in the sector. Especially for those that are willing to make buy and hold investments.
Here are three which I think could be in the buy zone:
The performance of the CSL Limited (ASX: CSL) share price is a big reason the health care index has gained so much this year. The biotherapeutics company's shares have been on a tear this year, rising a massive 32%. Whilst it is by no means a bargain buy any more, I still believe it could be a great buy and hold investment. Thanks to its lucrative immunoglobulins business and its fledgling Seqirus influenza vaccine business, I believe the company is positioned to deliver strong earnings growth for at least the next decade.
The Nanosonics Ltd. (ASX: NAN) share price may have rallied strongly in the last month, but it is still down 3% year-to-date. This could make it an ideal time to snap up the shares of the infection control specialist. Demand for its environmentally friendly and wholly effective ultrasound probe disinfection system has been growing at an incredible rate. Pleasingly this demand looks set to continue to grow for some time following the release of new guidelines for high level disinfection of ultrasound probes internationally. Management believes its trophon technology is perfectly positioned to meet the requirements outlined in the new guidelines.
I think the current Ramsay Health Care Limited (ASX: RHC) share price is at a great level for a long-term investment. Whilst 30x trailing earnings may be expensive, considering its strong growth prospects I think it is more than justified. Demand for its healthcare services is almost certainly going to grow at a strong rate over the next decade due to ageing populations, increased chronic disease burden, and improvement in treatments and diagnosis. With such strong tailwinds, I think Ramsay would be a great investment.
