Why Cochlear (ASX:COH) May Be a Standout in ASX200 Healthcare Stocks in 2025

Highlights 

• COH shares trade below historical valuation 
• Healthcare sector shows stable, long-term potential 
• Growing appeal for ethical and sustainable investing 

Cochlear (ASX:COH), the global leader in hearing implant technology, has seen its share price fall by 6.2% since the start of 2025. While the short-term price movement may concern some, the long-term fundamentals of the company and the broader healthcare sector offer compelling reasons to keep a close eye on this ASX200-listed healthcare giant. 

Founded in Sydney in 1981, Cochlear designs and manufactures implantable hearing devices and has delivered more than 750,000 devices globally. With a presence in over 50 countries and a workforce of more than 5,000, Cochlear has established itself as a dominant force in hearing solutions. Its mission to enhance the quality of life for individuals with hearing impairments aligns well with increasing global focus on ethical and sustainable investing. 

Healthcare stocks such as Cochlear have traditionally shown resilience, especially during economic downturns. Spending on healthcare is typically considered essential, which gives companies in the sector what analysts refer to as "sticky" revenue. These consistent income streams provide stability, distinguishing them from more cyclical industries like energy or discretionary retail. 

A broader look at the ASX200 shows that the S&P/ASX200 Healthcare Index (ASX:XHJ) has underperformed the general index over the past five years, returning -0.23% per annum compared to 8.88% for the ASX200. Despite this, the healthcare sector remains one of the most stable and forward-looking industries. 

Global healthcare spending is on a strong growth trajectory, with projections showing U.S. healthcare spend—comprising over 40% of the global total—expanding by 7% annually through 2027. Within healthcare, tech-focused areas like SaaS and healthcare IT are forecast to grow even faster, with estimated growth rates exceeding 15% annually until 2030. 

Cochlear also stands out on valuation metrics. Its current price-to-sales ratio of 8.06x sits below its 5-year average of 9.18x. This suggests that despite a growing revenue base, the company’s share price hasn’t kept pace, potentially indicating an opportunity for investors seeking value in the healthcare space. 

In addition, as sustainable and ethical investing becomes more prominent, companies like Cochlear that directly improve lives are well-positioned to benefit from increasing capital flows. This trend could further enhance interest in both the stock and similar ASX dividend stocks offering long-term value with purpose-driven impact. 

Cochlear's innovation, ethical foundation, and current valuation present a combination that aligns well with long-term investment themes in the healthcare sector.