Nanosonics and 2 other ASX healthcare shares to buy

With the word 'COVID' on the tip of almost everyone's tongue and hospitals under pressure to keep up, is it time to think about investing in ASX healthcare shares?

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With the word 'COVID' on the tip of almost everyone's tongue, hospitals under pressure to keep up with demand and companies racing to find a vaccine, is it time to think about investing in health?

The ASX healthcare sector contains more than 100 companies. When I talk about healthcare, I am including healthcare equipment, services, pharmaceuticals, biotechnology and even life-science companies. Given the breadth of the sector, it can certainly be daunting to try and choose a healthcare company to invest in. Here are 3 of my favourite ASX healthcare shares to consider adding to your portfolio.

CSL Limited (ASX: CSL)

CSL (formerly known as Commonwealth Serum Laboratories) was founded over 100 years ago in Melbourne. Among the many achievements CSL has celebrated, the most recent is the development of the world's first human papillomavirus vaccine, known as Gardasil.

Earlier this month, CSL announced it is working to fight COVID-19 as well, by joining an industry partnership known as the CoVIg-19 Plasma Alliance. Needless to say, with the history of success CSL has, I'm interested to see what happens next. With its strong background in vaccines, I'm glad CSL is looking for solutions to our current pandemic.

The CSL share price is selling at around $271.73 (at the time of writing) and although this is a littler lower that its previous high of $343 before the March crash, its returns for investors over time have been spectacular. CSL shares are up more than 700% over the last decade. Current prices represent a 20% discount on the previous high, which is another reason I feel CSL shares are worthy of portfolio consideration.

Ramsay Health Care Limited (ASX: RHC)

Ramsay Health is another Aussie success story. Founded in 1964 in Sydney, Ramsay is a private healthcare provider. It has operations across multiple countries and specialises in surgery, rehabilitation and psychiatric care. Ramsay is the largest operator of private hospitals in the country, boasting 70 hospitals and day surgery units.

Trading at around $63 (at the time of writing), Ramsay's current share price represents a 20% discount on previous highs. Ramsay shares have grown in value approximately 370% over the last decade.

One of the issues Ramsay has faced during the COVID-19 crisis is the suspension of elective surgeries. The company has announced that it is gradually reintroducing elective surgery now, implementing new safety measures for patients. With its strong portfolio and the recent resumption of elective surgeries, it could be a good time to consider adding Ramsay Health shares to your portfolio.

Nanosonics Ltd. (ASX: NAN)

Founded in 2001 and based in Sydney, Nanosonics is an innovator in infection prevention. Recognising a problem with healthcare-associated infections, Nanosonics has developed many solutions, including its signature product, the 'trophon EPR'. This product provides a safe, simple solution to prevent ultrasound probe cross-contamination. For patients, this ensures high level disinfection and kills human papillomavirus (HPV), which is known to cause cancer. Nanosonics technology is used around the world, including countries such as America, Canada, France, Germany, Singapore and many others.

Trading around $6.20 (at the time of writing), the Nanosonics share price represents a 19% discount to previous highs. More importantly, over the last decade, Nanosonics shares have delivered a more than 1,000% return to investors. I feel that Nanosonics is a strong contender for portfolio inclusion.

Foolish takeaway

I've selected these 3 ASX healthcare shares as I feel that they are well positioned in the market and relevant to the COVID-19 crisis. Healthcare is an industry that is here forever, in some form or another. With CSL developing vaccines, Ramsay operating hospitals and Nanosonics preventing infections, they all offer a high value proposition to the healthcare space. The current pandemic only adds to that value.

Motley Fool contributor Glenn Leese has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. and Nanosonics Limited. 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.

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