--- title: Livewire | 5 Stocks in the Hottest Sector Right Now description: Tune in as Ben Rundle from NAOS Asset Management and Shane Fitzgerald from Monash Investors discuss the emerging players in the healthcare sector. image: https://blog.naos.com.au/hubfs/livewire%205%20stocks.png --- ##### [Subscribe to NAOS NEWS & Insights](https://www.naos.com.au/subscribe) [![](https://assets.website-files.com/5b3d7f5582ecae7f1e026ce2/60be9de099c2716fb2efb4a7_naos.svg) ![](https://assets.website-files.com/5b3d7f5582ecae7f1e026ce2/640666256ede5e8ae8e33da0_B-Corp-Logo-Black-RGB.png)](https://blog.naos.com.au/) [Home](https://www.naos.com.au) About [About NAOS](https://www.naos.com.au/about-our-firm) [Our Team](https://www.naos.com.au/about-our-firm#people) [Why invest with NAOS](https://www.naos.com.au/about-our-firm#why-invest) [Our Investment Beliefs](https://www.naos.com.au/about-our-firm#beliefs) [Our Investment Process](https://www.naos.com.au/about-our-firm#how-we-invest) Listed Investment Companies [NCC: NAOS Emerging Opportunities Company Limited](https://www.naos.com.au/ncc-naos-emerging-opportunities-company-limited) [NSC: NAOS Small Cap Opportunities Company Limited](https://www.naos.com.au/nsc-naos-small-cap-opportunities-company-limited) [NAC: NAOS Ex-50 Opportunities Company Limited](https://www.naos.com.au/nac-naos-ex50-opportunities-company-limited) [Our Listed Investment Companies](https://www.naos.com.au/our-lics-compare-our-lics) [How to Invest](https://www.naos.com.au/our-lics-compare-our-lics#how-to-invest) Private Opportunities [NAOS Private Opportunities Fund](https://www.naos.com.au/npof-naos-private-opportunities-fund) [NAOS Ideas Network](https://www.naos.com.au/naos-ideas-network) E.S.G. 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Not even two months into 2018, and it is already a solid 10% ahead of the wider market. Yesterday's half-billion dollar takeover for Viralytics - at a 175% premium to the stock price - is further evidence of the opportunities on the table here for shrewd players. So this week on Buy Hold Sell we ask our panelists for their view on some emerging players in the space including Japara, Nanosonics, and Capitol Health. Join us to hear Jeremy Hook from TMS Capital host Ben Rundle from NAOS and Shane Fitzgerald from Monash, as they pass their verdict on these stocks and suggest a few of their own. *Panel: Jeremy Hook from TMS Capital is joined by Ben Rundle from NAOS, and Shane Fitzgerald from Monash Investors* ### Key Points - **Japara Healthcare (JHC)** has been in a downgrade cycle for a few years, however has potential growth drivers, including a fully-funded development pipeline and easing regulatory headwinds. - **Nansonics (NAN)** has a positive sales agreement with GE, is close to announcing new products, and generates a great return on capital. Overall, it is a great company, but is there much upside from current valuation? - **Capitol Health (CAJ)** looks cheap at 6 times EBITDA, and even cheaper given the average 10 times for M&A in the sector. Question over regulatory risks given current pace of growth in the radiography industry. - Hospital equipment distributor, **Paragon Care (PGC)** on 9.6 times PE and has used recently raised capital to make strongly accretive acquisitions. Revenues are seasonal and a better half is to come. - **Resmed (RMD)** is hard to go past in the sector. It is a strong leader, management is excellent, and is a tough competitor. Expect it to go higher... #### Watch Next: You can access more great market insights from Ben Rundle as his disscusses [Riding the Infrastructure Boom](https://blog.naos.com.au/news-media/ben-rundle-riding-the-infrastructure-boom) and [Small Cap Investing in a Volatile Market](https://blog.naos.com.au/news-media/ben-rundle-small-cap-investing-in-a-volatile-market) [Livewire: Published 23 February 2018](https://www.livewiremarkets.com/wires/buy-hold-sell-5-stocks-in-the-hottest-sector-right-now) ###### [NAOS Insights](https://blog.naos.com.au/news-media/topic/naos-insights) [NAOS in the News](https://blog.naos.com.au/news-media/topic/naos-in-the-news) ###### Share this post ### Comments ##### NAOS Asset Management ![](https://uploads-ssl.webflow.com/5b09df434e359cb73f2f80b5/5b09df434e359c362d2f81c4_location-icon-white.svg) Level 34, 25 Martin Place Sydney NSW 2000 ![](https://uploads-ssl.webflow.com/5b09df434e359cb73f2f80b5/5b09df434e359c121c2f81c8_mail-icon-white.svg) [enquiries@naos.com.au](mailto:enquiries@naos.com.au?subject=NAOS%20Website%20Contact) ![](https://uploads-ssl.webflow.com/5b09df434e359cb73f2f80b5/5b09df434e359ce0f62f81c9_phone-icon-white.svg) +61 2 9002 1576 ##### Our Listed Investment Companies [ASX: NCC - NAOS Emerging Oportunities Company Limited](http://www.naos.com.au/ncc-naos-emerging-opportunities-company-limited) [ASX: NSC - NAOS Small Cap Opportunities Company Limited](http://www.naos.com.au/nsc-naos-small-cap-opportunities-company-limited) [ASX: NAC - NAOS Ex-50 Opportunities Company Limited](http://www.naos.com.au/nac-naos-ex50-opportunities-company-limited) [NAOS Private Opportunities Fund](https://www.naos.com.au/npof-naos-private-opportunities-fund) [Listed Investment Companies](http://www.naos.com.au/our-lics-compare-our-lics) [Share Registry](https://boardroomlimited.com.au/) [Corporate Governance](http://www.naos.com.au/corporate-governance) ##### More Links [Privacy Policy](http://www.naos.com.au/privacy-policy) [Terms & Conditions](http://www.naos.com.au/terms-conditions) ##### Follow NAOS [![](https://uploads-ssl.webflow.com/5b3d7f5582ecae7f1e026ce2/5b3d7f5582ecae7e51026d27_twitter-icon-white.svg)](https://twitter.com/naosassetmgmt) [![](https://uploads-ssl.webflow.com/5b09df434e359cb73f2f80b5/5b09df434e359c11092f818c_facebook-icon-white.svg)](https://www.facebook.com/NAOSAssetManagement) [![](https://uploads-ssl.webflow.com/5b3d7f5582ecae7f1e026ce2/5b3d7f5582ecae133c026dca_Group%20261.svg)](https://www.linkedin.com/company/naos-asset-management) [![](https://uploads-ssl.webflow.com/5b3d7f5582ecae7f1e026ce2/5bf6115a4ae34255e68089e1_Asset%201Chart4.svg)](https://www.instagram.com/naos_asset_management/) Join our investment community. 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