NMC Health [NMC] is our first choice to go into the new Growth Stocks feature. I like the idea of representation in the Healthcare sector within an investment portfolio. As a population, we’re getting older and living longer. There’s a greater need for medical services and pharmaceuticals designed to give us a better quality of life in our old age.
NMC Health have a nice low PEG (Price / Earnings Growth ratio) that suggests there’s growth in the current price. Brokers are forecasting a healthy rise in profits over the next two years and the directors have been increasing their shareholdings over the last six months – always a good sign.
Their gearing is high – something you would expect from a business that is maintaining an acquisition strategy in it’s native UAE. However, the business appears to have the ability to meet these debts, suggesting a sound financial footing.
I bought in at 1338p. Here’s the 1 year chart – what do you think?
* My thanks to JD Financial Publishing for providing access to the Company REFS research tool