Healthcare stocks can offer strong investment opportunities without requiring a huge upfront cost. Below, we look at three companies priced under $1,000, each showing solid growth and potential for long-term investors. These stocks have demonstrated resilience and promise, making them worth considering for any portfolio.
1. Pro Medicus Ltd (ASX: PME)
Pro Medicus Ltd has been a standout performer on the ASX, delivering impressive returns over the past five years. Specialising in healthcare imaging software, Pro Medicus has seen its shares surge by nearly 480% since 2019, making it one of the top-performing healthcare stocks in the market.
What’s driving the growth?
The company's strong financial results for FY24 provide a clear picture of why investors are flocking to this stock. Pro Medicus reported a 29.3% increase in revenue, reaching $161.5 million, and a 36.5% jump in net profit to $82.8 million. These figures underscore the company's ability to scale its operations and penetrate the lucrative US market, where it currently holds a 7% market share with plenty of room to grow.
The icing on the cake? Pro Medicus also offers a fully franked dividend, which has been steadily increasing, adding even more value to shareholders. For long-term investors, this stock not only offers substantial growth potential but also the benefit of a reliable income stream.
2. OncoSil Medical Ltd (ASX: OSL)
OncoSil Medical has developed a targeted brachytherapy device designed for the treatment of locally advanced unresectable pancreatic cancer. This device delivers a precise dose of beta radiation directly into the tumour, offering a less invasive option compared to conventional treatments. The combination of this technology with chemotherapy has shown promising results in shrinking tumours that were previously deemed inoperable.
Why consider OncoSil Medical?
Recent reports show a 78% surge in the commercial use of OncoSil's device during Q4 FY24 compared to Q4 FY23, reflecting a growing adoption of this treatment in clinical practice. Success stories, such as the first treatment in Türkiye where a pancreatic tumour was reduced enough to allow for surgical resection, highlight its potential. The company has now treated over 200 patients worldwide, with additional market expansion in countries like Italy, Spain, and Israel.
With a strong track record of growth and expanding market penetration, OncoSil Medical offers investors a compelling opportunity in the healthcare sector, especially as the demand for innovative cancer treatments rises globally​.
3. CSL Ltd (ASX: CSL)
CSL Ltd is a global leader in biotechnology, with a portfolio of life-saving medicines. Despite its substantial market cap of $145 billion, CSL remains a strong contender for investors looking for growth and stability in the healthcare sector.
What makes CSL a no-brainer?
CSL has a proven track record of consistent revenue and profit growth. In FY24, the company grew its revenue by 11%, reaching US$14.8 billion, and net profit after tax (NPAT) rose by 20% to $2.64 billion. The company also increased its full-year dividend by 12%, making it an attractive option for income-focused investors.
One of CSL’s strengths lies in its commitment to research and development, investing around 10% of its annual revenue into R&D to drive the next generation of healthcare products. This focus on innovation ensures that CSL remains at the forefront of the biotechnology industry, with a large global market to tap into.
Looking ahead, analysts are optimistic about CSL's growth prospects, with UBS forecasting that net profit could rise to US$5.5 billion by FY28, representing a 90% increase. This potential for substantial earnings growth makes CSL a solid pick for long-term investors.
For investors interested in healthcare stocks under $1,000, Pro Medicus, OncoSil Medical, and CSL Ltd offer solid opportunities. Pro Medicus stands out for its strong financial performance and market expansion, while OncoSil Medical’s advancements in pancreatic cancer treatment show great long term growth potential. CSL Ltd continues to be a reliable choice, driven by its global biotechnology leadership. These stocks not only have growth potential but also offer a level of stability in the healthcare sector.
