When it comes to long-term investing I think the healthcare sector is one of the best places to look.
Due to ageing populations globally and increased chronic disease burden, I expect demand for healthcare services will grow strongly over the next couple of decades.
I feel this could put a number of companies in the sector in a strong position to grow earnings at an above-average rate.
Two which I think are worth considering are listed below:
Nanosonics Ltd. (ASX: NAN)
Although it has gone on a strong run post-earnings, the Nanosonics share price is still down 17% year-to-date. I think this could be an opportune time to invest in the infection control specialist, especially given the strong earnings growth it is exhibiting. In FY 2017 Nanosonics posted a 58% increase in gross profit thanks largely to strong demand for its trophon system in the United States. In FY 2018 the company aims to establish its trophon system as the standard of care in existing markets, while also expanding into new territories. This makes it a great buy and hold investment option in my opinion.
Ramsay Health Care Limited (ASX: RHC)
Due to its FY 2018 guidance of core earnings per share growth of between 8% and 10% falling a little short of expectations, the shares of this leading global private hospital company have fallen reasonably sharply post-earnings. I believe this has created a buying opportunity for investors looking to make a long-term buy and hold investment. Due to its vast and ever-increasing global hospital network and the expected strong demand for healthcare services over the next couple of decades, I believe Ramsay is in a great position to deliver strong earnings growth for a long time to come.
