Over the last five years the S&P/ASX 200 Health Care index has vastly outperformed the gains made by the S&P/ASX 200 even when including dividends.
The good news is that I believe the quality in the sector and favourable tailwinds means there's a chance that this outperformance will continue over the next five years.
In light of this, I think it could be well worth gaining exposure to the sector right now. Here are three fast-growing healthcare to buy this month:
Nanosonics Ltd (ASX: NAN)
At its annual general meeting last month Nanosonics' management team said that it believes it has built the infrastructure and capability to be a world leader in infection prevention and I agree. This is largely due to its increasingly popular trophon EPR product. The trophon product is an automated system that delivers effective, efficient and safe high-level disinfection of ultrasound probes. In FY 2018 it grew its installed base by 25% to 17,740 units. The main driver of this growth was a 26% lift in its North American installed base to 15,620 units. While this sounds like a big number, management estimates that it has a global market opportunity of 120,000 units, which means there's still a significant runway for growth ahead of it.
Pro Medicus Limited (ASX: PME)
Pro Medicus is the healthcare technology company behind the popular Visage 7 software which provides radiologists and referring physicians with fast server-side rendered images streamed via an intelligent thin-client viewer. This allows its users to have a customised protocol-driven workflow to natively view multi-dimensional imagery and a patient's complete imaging history. I think a testament to the quality of the product is the fact that a number of highly respected global healthcare institutions have signed multi-year agreements for the software over the last 12 months. In fact, just this week Pro Medicus signed a $3 million extension to the contract it has with a large German government hospital network.
ResMed Inc. (ASX: RMD)
Another top healthcare share that I think is worth considering is ResMed. I believe the sleep treatment-focused medical device company is one of the highest quality companies on the ASX and has outstanding long-term growth prospects due to its leading position in a market expected to grow at a strong rate over the next decade. I felt this was evident in the first quarter of FY 2019 when the company posted an impressive 23% increase in net income.
