2 ASX healthcare shares that analysts think could beat the market

The healthcare sector could be a good place to invest…

| More on:
Medical staff wear hero capes, indicting strong shar [price performace for healthcare shares

Image source: Getty Images

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

Over the last five years, the healthcare sector has been a great place to invest. During this time, the S&P/ASX 200 Health Care index has almost returned 100% for investors.

As a comparison, the S&P/ASX 200 Index (ASX: XJO) is up almost 33% over the same period. That's triple the return of the ASX 200.

The good news is that with demand for healthcare products and services expected to continue to rise in the future due to ageing populations, better technologies, and increased chronic disease, there's a possibility that this side of the market will continue to outperform over the next five years.

With that in mind, I have picked out two ASX healthcare shares which have been tipped as buys recently. They are as follows:

Healius Ltd (ASX: HLS)

The first healthcare ASX share to look at is Healius. It is one of Australia's largest pathology and diagnostic imaging providers. Healius has been a strong performer in FY 2021, reporting a 16% increase in first half revenue to $953.5 million and a 190% increase in profit to $75.6 million. This was driven by a very strong performance from its key pathology business, which reported a 22% increase in revenue to $711.4 million and wider margins. Positively for the company, demand for COVID-related pathology services looks set to remains stronger for longer due to the Delta strain. This bodes well for its near term growth.

One broker that is bullish on its future is Macquarie. The broker currently has an outperform rating and $4.85 price target on its shares.

Nanosonics Ltd (ASX: NAN)

Another healthcare ASX share to consider is Nanosonics. It is a leading infection prevention company behind the popular trophon EPR ultrasound probe disinfection system. This system protects an estimated 80,000 patients from the risk of cross contamination each day. Nanosonics is also busy researching and developing a number of new products which are due to be launched in the coming years. One of these has just been revealed and is AuditPro. It is a digital platform that has been designed to improve traceability, reporting, and compliance of infection prevention measures for medical devices.

Morgans remains positive on the company and has an add rating and $6.57 price target on its shares.

Motley Fool contributor 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 and has recommended Nanosonics Limited. The Motley Fool Australia owns shares of and has recommended Nanosonics Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Healthcare Shares

three excited doctors with hands in the air
Healthcare Shares

Why Macquarie forecasts a 22% upside for this ASX All Ords healthcare stock

Macquarie expects a big rebound ahead for this ASX healthcare stock. But why?

Read more »

A young man wearing a black and white striped t-shirt looks surprised.
Healthcare Shares

Guess which ASX All Ords stock is jumping 9% on $1.6b market opportunity

This small cap is having a big day. But why?

Read more »

A group of three scientists talking excitedly while working in a lab on a diabetes test developed by Proteomics International Laboratories which is an ASX share tipped to explode by Alto Capital
Healthcare Shares

75% upside: Broker tips two ASX healthcare shares

This broker sees big potential in these two Australian healthcare companies 

Read more »

Cropped shot of an attractive young female scientist working on her computer in the laboratory.
Healthcare Shares

What does the Macquarie Hospital Claims Index mean for ASX 200 health insurance stocks?

Macquarie shares its view on Medibank Private and NIB Holdings.

Read more »

Two lab workers fist pump each other.
Broker Notes

What's JP Morgan's price target on CSL shares?

Are CSL shares undervalued or will they continue to underperform?

Read more »

Portrait, confidence and team of doctors in the hospital standing after a consultation or surgery. Success, healthcare and group of professional medical workers in collaboration at a medicare clinic.
Healthcare Shares

2 ASX healthcare stocks making huge moves on big news

These shares are getting investors excited today. But why?

Read more »

Man drawing an upward line on a bar graph symbolising a rising share price.
Healthcare Shares

Which ASX All Ords stock is up 15% on guidance upgrade?

Let's find out what is getting investors excited on Tuesday.

Read more »

A senior pharmacist talks to a customer at the counter in a shop.
Healthcare Shares

3 reasons why the Sigma Healthcare share price could be a buy

This business has a very exciting outlook.

Read more »