I think the ASX health actions could be good options to consider for most portfolios.
There are some great ASX growth stocks that are offering rapid increases to their profits like Pro Medicus Limited (ASX: PME) e ResMed Inc (ASX: RMD). While there are other defensive health companies with steadily growing profits and dividends such as Ramsay Health Care Limited (ASX: RHC) e NIB Holdings Limited (ASX: NHF).
I believe that most people would put their health above many other types of spending, such as retailing or traveling, so the health sector's actions could be defensive choices. Health problems do not come in cycles and there is substantial support from the government, so there is potentially a lot to appreciate for the industry. That's why I have my eyes on these two ASX health shares:
CSL could be the highest quality healthcare business on ASX, perhaps one of the best ever.
The activities of biotherapies and vaccines against the global influence are regularly provided with new products that aim to keep people healthier and the demand for plasma products growing.
CSL spends hundreds of millions of dollars (in dollar terms) on research and development each year, ensuring a continuous pipeline of potential future revenue streams.
CSL is traded with estimated revenue of 33x FY20.
Paragon is a provider of medical equipment for acute, age, primary, community and hospital care. Think of things like beds, surgical equipment, trolleys and privacy screens.
Recently the company is going through a difficult period, but it may be about to get back on its feet with the sale of its "legacy capital" for $ 4.5 million to Cabrini Health, which was a real shock for Paragon's profit because they actually make losses. It is hoped that the sale will mean the return to profit and profit growth of Paragon in the fiscal year 2009 with higher profit margins.
It trades at the estimated income of 10x FY20.
I would like CSL to be in my portfolio because it is such a high quality business – it is worth maintaining quality in all economic cycles – and Paragon looks very cheap and has a growth path from here. The aging population should help them both in the coming years.
The other strong companies to consider along with CSL are these top titles.
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Tristan Harrison owns shares in Paragon Care Limited. Motley Fool The Australian parent company Motley Fool Holdings Inc. owns shares in and recommends Pro Medicus Ltd. The Motley Fool The Australian parent company Motley Fool Holdings Inc. holds shares in CSL Ltd. The Motley Fool Australia has recommended NIB Holdings Limited, Paragon Care Limited, Pro Medicus Ltd., Ramsay Health Care Limited and ResMed Inc. We Fools may not all have the same opinions, but we are all convinced that, considering a wide range of insights, we have become better investors. The Motley Fool has a disclosure policy. This article contains only general investment recommendations (with AFSL 400691). Authorized by Scott Phillips.
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