Stock Of The Week – RHC


Our stock of the week is Ramsay Health Care (RHC).

RHC is Australia’s largest private hospital operator, with approximately 30% of the market share, and is currently one of the stocks to watch.

RHC facilities cater for a broad range of health care needs from day surgery procedures to highly complex surgery, as well as psychiatric care and rehabilitation.

RHC’s recent FY profit upgrade – to guidance of 18%-20% growth from previous guidance for a rise of 12%-14% – is a sign that its Australian business is performing well and that its UK operations have benefited from internal cost restructuring.

RHC has confirmed that its Australian operating performance has been slightly ahead of expectations and overall interest costs have been lower than expected as a result of proactive interest rate management.

RHC has an excellent portfolio of assets and is operating in the defensive healthcare industry, which is arguably the most immune from global bear market movements.  Stocks to watch in periods of market volatility are usually in defensive sectors.