Is the healthcare sector ripe for buying opportunities? Luke Laretive from Seneca Financial Solutions says now is the time to buy selecct companies at multi-year lows. Luke points to ResMed as beng ripe for investment in the wake of a recent 27% sell-off as a result of weaker margins and concerns over MPIC drug’s impact on sleep apnea market. He says such a buying opportunity in a quality company doesn’t come around very often.
Aside from ResMed, Luke says NIB Holdings (NIB) and Sonic Healthcare (SHL) offer as good value. He says with NIB exhibiting 11% operating profit growth last year and Sonic’s recent acquisitions in Europe, both companies offer growth and potential returns to investors.
Just in case you think Luke is shunning small-cap healthcare, think again. Luke names Corum Group (COO) as a small cap with great potential growth, given it dominates a 95% market share of the pharmacy sector in Australia.