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Highlights
- Stocks having market capitalisation between AU$2 billion to AU$10 billion are called mid-cap stocks.
- Mid-cap stocks are more stable and liquid than small-cap stocks.
- On Tuesday, the S&P/ASX MID-CAP 50 closed with a loss of 0.38%
On the Australian Securities Exchange (ASX), mid-cap stocks are the stocks whose market capitalisation ranges from AU$2 billion to AU$10 billion, i.e., these stocks fall between the small-cap and large-cap categories.
Mid-cap stocks are favourite among investors as they have higher stability and liquidity compared to small-cap stocks. They have ample scope for growth and eventually, can become large-cap stocks in the future. On Tuesday, the S&P/ASX MID-CAP 50 closed with a loss of 0.38%, closely aligning with the ASX200, which closed with a loss of 0.5%.
This article will discuss five mid-cap stocks from the healthcare sector and their recent updates.
Telix Pharmaceuticals Limited (ASX:TLX)
Telix is a biopharmaceutical company based in Australia that develops commercial diagnostic and therapeutic products using Molecularly Targeted Radiation (MTR). For the quarter ended 31 December 2021, TLX reported cash reserves of AU$22.04 million. In the same quarter, Telix received regulatory approval from the US Food and Drug Administration (FDA) and the Australian Therapeutic Goods Administration (TGA) for its lead prostate cancer imaging product, Illuccix®.
Related read: All you need to know about Telix's FDA approval for Illuccix®
Healius provides diagnostic imaging services, pathology, day hospitals, and in-vitro fertilization (IVF) services throughout Australia. It has 2,105 pathology sites, 134 imaging sites, and 11-day hospital sites.
In the first quarter of FY2022 ended 30 September 2021, Healius reaped strong revenue growth (nearly 44%) driven by COVID-19 testing. Recently, HLS completed the acquisition of Agilex, one of Australia’s leading bioanalytical laboratories, worth AU$301.3 million.
Image source: © Rido | Megapixl.com
Ansell Limited specialises in providing health and safety protection solutions to more than 100 countries around the globe. With its operations spread across North America, Latin America/Caribbean, EMEA, and the Asia Pacific, the company employs more than 14,000 people worldwide.
In the first half of FY22 ended 31 December 2021, the company’s operations were hampered by COVID-19, mainly in Southeast Asia. Despite the obstacles, the company’s sales increased by nearly 8% during the period compared to H1 FY21. However, its profit went down by 27% in 1H FY22. The company is expecting lesser impact of COVID-19 in H2 as compared to H1.
Also read: COVID-19 hits Ansell’s (ASX:ANN) H1; profit down 27%
Metcash is an Australian wholesale distributor of food, liquor, and hardware. It trades with more than 1600 food stores and over 12,000 liquor customers. It is a leading player in the Australian food market and the second-largest competitor in liquor and hardware market.
Metcash reported a 1.5% increase in revenue for the first half of FY2022 ended 31 October 2021. Similarly, the interim dividend also increased by 31% in the same period. Metcash is a good dividend provider with an annual dividend yield of 4.81%.
Pro Medicus is a healthcare IT company specialising in Enterprise Imaging and Radiology Information System (RIS) software. In the financial year ended 30 June 2021 (FY2021), PME increased its revenue by 19.5% and net profit after tax by 33.7%. The company announced five new contract wins in North America and one in Europe in the same period. The company also increased its dividend by 25% over the previous year.
You may read: Five mid-cap stocks that have delivered over 10% YTD returns
