Why PolyNovo and these ASX healthcare shares could be long term market beaters

PolyNovo Ltd (ASX:PNV) and these ASX healthcare shares could be long term markets beaters for Australian investors. Here's why…

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

I think the healthcare sector is a great place to invest with a long term view due to the favourable tailwinds that it is experiencing.

These include ageing populations around the globe, increased chronic disease burden, and better technologies. But with so many options for investors to choose from, which ones should you be buying?

Below are three ASX healthcare shares I believe could provide stellar returns for investors over the long term:

Nanosonics Ltd (ASX: NAN)

The first healthcare share to consider buying is Nanosonics. It is an infection prevention specialist best known for its trophon EPR disinfection system for ultrasound probes. It is also the first high level disinfection system for ultrasound probes that is effective against high-risk, cancer causing strains of Human Papilloma Virus. This has gone down very well with healthcare institutions, leading to its installed base growing at a rapid rate over the last few years. The good news is that there's still a large addressable market for it to grow into in the coming years. This should be supported by the launch of new products targeting unmet needs which have similar market opportunities. If they are anywhere near as successful, Nanosonics will have a very bright future ahead of it.

PolyNovo Ltd (ASX: PNV)

Another healthcare share which I think could have a bright future ahead of it is PolyNovo. It is the medical device company behind the NovoSorb Biodegradable Temporising Matrix (BTM) product. This synthetic polymer was developed at CSIRO and is used by clinicians to treat serious burn and skin trauma patients. It can be used in surgical procedures and will eventually biodegrade safely and be excreted by the body. The company's current target market has a sizeable $1.5 billion addressable opportunity. However, management is looking to expand BTM's use into the hernia and breast treatment markets. This would lift its addressable market to a total of $7.5 billion if successful.

Ramsay Health Care Limited (ASX: RHC)

A final healthcare share to look at is Ramsay Health Care. This global private hospital operator currently has 480 facilities across 11 countries. Although the near future is not going to be easy for Ramsay due to both the pandemic and general tough trading conditions in the private hospital space, I believe its long term outlook is very positive. This could make it worth considering a long term and patient investment in its shares. Especially given the aforementioned tailwinds that the sector is experiencing. This is likely to lead to a strong increase in demand for its services over the next decade and beyond.

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Nanosonics Limited and POLYNOVO FPO. The Motley Fool Australia has recommended Nanosonics Limited and Ramsay Health Care Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Growth Shares

Two university students in the library, one in a wheelchair, log in for the first time with the help of a lecturer.
Growth Shares

3 no-brainer ASX shares to buy with $200 right now

You don't need a brain to see that these shares could be top picks right now.

Read more »

A man with a wide, eager smile on his face holds up three fingers.
Growth Shares

3 ASX growth stocks worth buying with $7,000 in your portfolio today

These stocks are all historic market beaters.

Read more »

Two smiling work colleagues discuss an investment or business plan at their office.
Growth Shares

3 ASX 200 shares with huge growth potential in the next decade

Analysts think these growth shares could be in the buy zone in July.

Read more »

A young woman sits at her desk in deep contemplation with her hand to her chin while seriously considering information she is reading on her laptop.
Growth Shares

Where I'd invest $5,000 into ASX 300 growth shares

These stocks have excellent growth potential.

Read more »

a woman sits at a computer with a satisfied expression on her face in a white room with greenery outside her window.
Growth Shares

The ASX growth stock up 10% this year with more room to move

This broker believes there’s still more in the tank for this telecommunications company 

Read more »

A couple stares at the tv in shock, one holding the remote up ready to press.
Growth Shares

3 high-conviction ASX 200 stocks to buy and hold

Brokers think these shares are among the best to buy now.

Read more »

Person holding Australian dollar notes, symbolising dividends.
Growth Shares

The smartest ASX growth stocks to buy with $3,000 right now

Analysts think these shares would be top picks for smart investors.

Read more »

A laughing woman wearing a bright yellow suit, black glasses and a black hat spins dollar bills out of her hands signifying the big dividends paid by BHP
Growth Shares

2 Australian stocks that could turn $10,000 into $100,000

Let's see why these shares could be destined for bright long-term futures.

Read more »