Pathway to Investment in ASX Healthcare Stocks
Before investing in these ASX healthcare stocks, or stocks in any other sector for that matter, investors should examine a company's earnings, revenue, and its market cap, capitalisation, cap and its market capitalisation first. Companies like Pro Medicus and CSL (among others companies) have managed to maintain steady earnings. Analysing the company's share price and valuation is crucial.
A company's business success in other industries as the healthcare sector is often tied to its ability to develop and sell innovative healthcare products, treatments, and services that meet market demand. Clinical trials for new treatments are a good indicator of ASX healthcare stocks' future profit potential - if of course the clinical trials themselves are successful and regulators approve.
Investors should assess their risk tolerance before investing in healthcare companies and stocks. Although healthcare companies and stocks are generally considered defensive, investing the sector can still be affected by factors such as regulatory changes and advancements in technology. An individual's investment decision should be based on their financial goals, risk tolerance, and timeline.
Get the Latest Stock Market Insights for Free with
Stocks Down Under & Pitt Street Research
Join our newsletter and receive exclusive insights, market trends, investment tips, and updates delivered directly to your inbox. Don't miss out – subscribe today and make informed investment decisions.
A Deep Dive into Top ASX Healthcare Stocks
The healthcare sector industry in Australia has been a significant growth area for companies in the Australian Securities Exchange (ASX) for years. Despite the volatility index of health care sector in the world of markets, the ASX healthcare sector index has shown defensive qualities due to consistent market demand for healthcare services, supplies pathology services and products.
The sector is home to a handful of established companies like CSL (ASX:CSL) that are world-renowned names and make multi billion dollar profits as well as a significant difference to the lives of many around the world. Then there are several dozen companies that are developing drugs of medical devices that they hope can become the next big blockbuster product, ranging from companies at the final clinical trial stage to companies that haven't even commenced clinical work yet.
ASX investors have made spectacular returns on certain companies that have realised this dream, such as Telix (ASX:TLX) and Neuren (ASX:NEU) in recent years. At the same time, it is a long hard slog to get a drug or device to market, and the dream can fail at multiple hurdles along the way, such as through clinical trials failing. And even established companies can endure challenges such as flat demand for their products, major cost inflation and competition. Investors in healthcare stocks have been concerned about the latter two issues with several big name stocks in the past year - specifically the weight loss drug Ozempic.
Ultimately, the ASX Healthcare sector presents several opportunities for investors to make money and to make it through companies making a major difference to the lives of the population.
3 Best ASX Healthcare Stocks to Buy Now in 2025
Pro Medicus (ASX: PME)
Pro Medicus is arguably the top ASX 200 healthcare stock. It is a leading provider of radiology software, having gone strength to strength with and selling its Visage software. PME reported an impressive net profit of $82.8m in FY24 from $161.5m in revenue. It was a very successful year due to a series of new contract wins with US healthcare and life sciences and other providers of life sciences.
Neuren Pharmaceuticals (ASX: NEU)
Neuren Pharmaceuticals is nearly 18 months fresh from being given FDA approval to sell its Trofinetide drug in the US for Rett Syndrome. The stock has re-rated substantially, but is still only A$1.5bn (a fraction of Telix). We see further upside from Neuren entering Europe & Canada for Rett Syndrome and eventually commercialising its secondary asset NNZ-2591.
CSL (ASX: CSL)
Yes this is an easy choice and one that some investors may be doubting in the aftermath of a recent profit downgrade, but hear us out here. They are a global leader in the health care sector. CSL has two primary businesses: flu vaccines and blood products development – for influenza vaccines. In FY25, CSL is expecting a $3.2-3.3bn profit and to deliver 'annualised double digit [%] earnings growth for the rest of the decade'.
3 Best ASX Healthcare Stocks to Buy Now in 2025
FAQs on Investing in Healthcare Stocks
The iShares Global Healthcare ETF provides exposure to a range of global healthcare stocks, including those listed on ASX. It aims to track the performance of the S&P Global 1200 Healthcare Sector Index.
Our Analysis on ASX Healthcare Stocks
Recce Pharmaceuticals (ASX:RCE): Taking the fight against superbugs to the next level
Recce Pharmaceuticals (ASX:RCE, FSE:R9Q) is a Sydney-based company fighting the battle against superbugs, with a legitimate chance of succeeding if…
ResMed (ASX:RMD): Investors who bought the dip would be satisfied, but is there any growth left in this one?
ResMed (ASX:RMD) is one of the few ASX healthcare stocks that has successfully made it in the USA. In this…
Novo Nordisk (CPH: NOVO-B): It’s not all smooth sailing for the US$400bn company behind obesity drug Ozempic
Not many 100-year old healthcare stocks see a sudden 30% jump in sales in one year, but Novo Nordisk (CPH:…
Cochlear (ASX:COH) is a long term growth story you should listen to
Cochlear is one of few stocks that has created immense shareholder value and has also greatly improved the lives of…
Sonic Healthcare (ASX:SHL): Australia’s biggest pathology stock is available at a bargain price
It is not often that you can buy a blue-chip stock at a bargain price, but Sonic Healthcare (ASX:SHL) is…
Revascor’s FDA approval sends the Mesoblast rollercoaster upwards
Its been a rollercoaster ride for Mesoblast (ASX:MSB) shareholders, and although its been mostly downwards, the FDA approval of Revascor…