Want to invest in healthcare in 2020? I’d buy these FTSE 250 stocks today

first_img Enter Your Email Address Want to invest in healthcare in 2020? I’d buy these FTSE 250 stocks today Image source: Getty Images. “This Stock Could Be Like Buying Amazon in 1997” See all posts by Alan Oscroft Our 6 ‘Best Buys Now’ Shares Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! You might have noticed that healthcare is quite a big issue in 2020. But while the Covid-19 crisis is pummelling so many shares in the stock market crash, how can you profit from the sector? Here are two FTSE 250 stocks that I think could reward you well in the coming decades. They approach the healthcare business in two different ways, ways that I see as complementary.The first is Mediclinic International (LSE: MDC), which released a first-half update Thursday, ahead of full results due on 12 November. The private hospital group, which has operations in South Africa, Namibia, Switzerland and the United Arab Emirates, spoke of a “robust first-half operating performance“, despite the Covid-19 impact.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…Chief executive Dr Ronnie van der Merwe said “We have seen a good rebound in trading since May 2020, particularly in Switzerland and the United Arab Emirates, as the initial peak of the pandemic passed“.Tough first halfMediclinic has certainly had a tough year so far, along with so many in the FTSE 250. Reported total revenue is down 7%. Earnings per share, which came in at 9.9p for the first half last year, is set to come in just “marginally positive” this time. Mediclinic says it had £450m in cash and available facilities at 30 September, and that’s something I’d inspect carefully when we get the full-year results. The balance sheet is what matters most for companies under pandemic pressure this year.Mediclini, which owns 29.9% of Spire Healthcare, has been through a bad patch with falling earnings over the past couple of years. But after the big fall forecast for the current year, analysts are predicting a serious rebound for the 2021–22 year. That would put the shares on a forward price-to-earnings multiple of 12. I think Mediclinic has long-term growth potential, and I’d buy.FTSE 250 REITMy second pick provides a very different aspect to healthcare investment. It’s one I’ve liked for some time, Primary Health Properties (LSE: PHP). Primary Health is a FTSE 250 real estate investment trust (REIT). It invests in healthcare properties, primarily GP surgeries, and lets them on long-term leases.Earnings progress has been slow in recent years, but analysts see 20% growth this year with a modest extra next year. The Primary Health Properties share price is down 9% so far in 2020. But over the past two years we’re looking at a 30% gain.DividendsOn top of that growth, Primary Health has been one of the FTSE 250’s steadiest dividend providers. And that’s where an investment trust has an advantage. A lot of companies will pay a fixed proportion of earnings as dividends each year. But trusts will typically hold some back in good years to even things out in poorer years. Of course, individual investors can do that themselves with the dividend cash they earn. But a less erratic dividend stream can help keep sentiment sweeter and reduce share price volatility.I’ve long been a fan of investment trusts, REITs or otherwise. And if you’re investing for FTSE 250 income, I’d suggest you consider Primary Health Properties for your buy list.center_img Alan Oscroft | Thursday, 15th October, 2020 | More on: MDC PHP I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Simply click below to discover how you can take advantage of this. Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Alan Oscroft has no position in any of the shares mentioned. The Motley Fool UK has recommended Primary Health Properties. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.last_img read more