Due to the favourable tailwinds that it is experiencing, I believe the healthcare sector is a great place to invest with a long term view.
But with so many options for investors to choose from, which ones should you be buying?
Below are three ASX healthcare shares I think could provide stellar returns for investors over the long term:
Avita Medical Ltd (ASX: AVH)
The first healthcare share to look at is Avita Medical. It is a global regenerative medicine company which I think has a lot of potential. It is best known for its Recell system, which is a spray-on skin treatment used for burns victims. Demand for its offering has been growing very strongly over the last couple of years. This led to the company recently revealing an 84% increase in revenue for the 9 months ending 31 March 2020. While the company has a huge market opportunity already, it is seeking to extend Recell's use to treat vitiligo. Combined, the company has a significant runway for growth over the next decade.
Pro Medicus Limited (ASX: PME)
Another ASX healthcare share to consider buying is Pro Medicus. It provides a full range of radiology IT software and services to hospitals, imaging centres, and healthcare groups. The key product in its portfolio is the increasingly popular Visage 7 Enterprise Imaging Platform. This platform delivers fast, multi-dimensional images streamed via an intelligent thin-client viewer. Demand for Visage 7 has been growing strongly in recent years and continues to this day. In fact, on Monday Pro Medicus announced a major new contract with one of the highest rated hospitals in the United States. I believe this is a testament to the quality of its offering. It also revealed that it has a number of other sales opportunities in its pipeline that it is working on.
Ramsay Health Care Limited (ASX: RHC)
A final healthcare share to look at is Ramsay Health Care. It is a global private hospital operator with 480 facilities across 11 countries. The next 12 months are not going to be easy for Ramsay due to both the pandemic and overall tough trading conditions in the private hospital space. However, I believe these headwinds will ease over the medium term and Ramsay's growth will accelerate. Especially given how well-placed the company is to capture the expected increase in demand for healthcare services due to ageing populations.
