Over the last 12 months the healthcare sector has been one of the best performing areas on the Australian share market.
During this time the S&P/ASX 200 Health Care (Index: ^AXHJ) (ASX: XHJ) has carved out a gain of almost 24% compared to a 4.7% gain by the benchmark S&P/ASX 200.
While I wouldn't necessarily expect the healthcare sector to outperform to the same degree over the next 12 months, I do think there are a number of quality shares in the sector with the potential to deliver strong returns.
Three which I think investors ought to consider today are listed below:
CSL Limited (ASX: CSL)
One of the best performers in the sector over the last 12 months has been this biotherapeutics company. Thanks largely to strong demand for its immunoglobulin and specialty products, CSL has consistently outperformed the market's expectations. Furthermore, the early success of its fledgling Seqirus influenza business hasn't gone unnoticed by investors. I believe this could be a key driver of growth in the future, putting CSL in a position to continue delivering above-average earnings growth for the foreseeable future.
National Veterinary Care Ltd (ASX: NVL)
I think that this leading veterinary clinic operator is in a great position to grow its bottom line strongly over the coming years thanks to high levels of pet ownership and its growth through acquisition strategy in a highly fragmented industry. In the first-half of FY 2018 the company posted a 27.6% increase in revenue to $41.6 million and a 27.7% lift in net profit after tax to $3.3 million. I expect more of the same in the second-half.
Volpara Health Technologies Ltd (ASX: VHT)
I think Volpara Health Technologies has the potential to grow significantly in the future thanks to its breast imaging analytics and analysis products. The company's technology allows personalised, high-quality breast cancer screening based on automated, objective measurements of breast density, compression and radiation dose. Demand for the technology has been growing strongly, putting Volpara on course to exceed management's target of 200% growth in annual recurring revenues in FY 2018.
