2 ASX healthcare shares that analysts think could beat the market

The healthcare sector could be a good place to invest…
The post 2 ASX healthcare shares that analysts think could beat the market appeared first on The Motley Fool Australia. –

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.

The post 2 ASX healthcare shares that analysts think could beat the market appeared first on The Motley Fool Australia.

Should you invest $1,000 in Nanosonics right now?

Before you consider Nanosonics, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Nanosonics wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of May 24th 2021

More reading

Brokers using the lockdown to upgrade earnings forecasts on these ASX 200 shares

3 ASX shares to snap up before reporting season: expert

ASX 200 rises, API soars, Wesfarmers up

Healius (ASX:HLS) share price higher on acquisition and rebrand news
The 5 best ASX 200 healthcare shares of financial year 2021

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.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!