As my colleague Edward Sheldon recently commented, the world is set to experience a boom in the number of so-called silver surfers in the coming decades, a surge in the number of citizens over the age of 60. With this comes rising healthcare demand, naturally, and this is a phenomenon that GlaxoSmithKline, with its broad range of treatments, is in prime position to exploit.

This isn’t the only reason to pile in to GlaxoSmithKline today. Investors in the pharmaceuticals arena need to be prepared for long, frustrating and often extremely-expensive product launch delays in the event of poor testing data and/or the thumbs-down from regulators. The FTSE 100 firm has a great track record of getting its products to market relatively quickly, however, a critical quality in recent years as the business has suffered from crushing patent losses such as that of Advair.

Hospitals hero

Investors still concerned about the unpredictability surrounding drugs pipelines may be tempted to buy in to fellow Footsie share NMC Health (LSE: NMC) instead.

Like GlaxoSmithKline, the private healthcare provider is also in great shape to ride the boom of ageing citizens. It is, however, involved in offering a range of medical services from gynaecology and obstetrics though to drugs dispensing, although it is probably more famous for its hospital network which spans the United Arab Emirates.

In total NMC can actually boast a network of 185 facilities in 17 countries, a footprint that has been helped by rampant acquisition activity. It’s well placed to benefit from citizens’ booming wealth in the Emirates, but it is not content to rest on the exceptional emerging market revenues opportunities that it has. More specifically, it has stated its intention in recent times to get a slice of the fast-growing fertility clinic market and is looking to open a swathe of such clinics across Europe.

A pet pick

Looking at the business of healthcare though a different lens, Animalcare (LSE: ANCR) is a very-promising pharmaceuticals play focused on helping our sick four-legged friends. The business of providing medicines to both agricultural and companion animals is becoming increasingly large, and thanks to its exceptional product ranges things look exceptionally healthy for the AIM-quoted firm.

Animalcare’s operations have been given a huge boost following the acquisition of Ecuphar last year, a move that has boosted its geographical reach as well as its operational clout. The rationale of the move was underlined by news released this week that revenues from pet products jumped almost 70% year-on-year between January and June, to £23.6m.

And investors should be encouraged by the company’s vow to supercharge its position in the high-margin veterinary pharmaceuticals products arena. Its declining share price suggests that the market remains unconvinced right now, but I reckon the earnings outlook for the business remains extremely exciting.

The post FTSE 100 dividend stock GlaxoSmithKline isn’t the only healthcare star that could help you retire rich appeared first on The Twelfth Magpie.

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Royston Wild has no position in any of the shares mentioned. The Motley Fool UK owns shares of and has recommended GlaxoSmithKline. The Motley Fool UK has recommended NMC Health. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

However, while some growth stocks have made their investors rich, others have struggled lately. Here are the three worst growth stocks of 2018 so far. 

Rising costs

Growth star Asos (LSE: ASC) has fallen from grace this year as investors have baulked at the group’s escalating capex spending. 

Even though the company announced a 27% increase in sales for the six months ending in February, the firm is having to spend more to keep its edge over competitors. For the next two years, Asos is planning to spend £230m-£250m on logistics and distribution facilities, up from initial guidance of £200m-£220m.

Compared to current City forecasts for net profit of £81m for fiscal 2018, this figure is significant. With shares in Asos trading at 52 times forward earnings, management can’t afford to disappoint investors. 

Unfortunately, it looks as if this is what it has done. After rising 13% during the first quarter of 2018, it slumped following results. The stock is now down 13% for the year, a decline of 26% from the peak. 

To rebuild investor confidence, Asos needs to prove that it remains ahead of the competition, and the only way to show this is with profit growth. But I believe there could be further declines ahead.

Bust IPO 

Last year, Alfa Financial Software (LSE: ALFA) made a splash as the biggest IPO in London. The company has not lived up to the hype. Year-to-date the stock has cratered 70%.

Earlier this year, the company issued a profit warning announcing that a major customer had paused its implementation of Alfa’s software, following data migration issues. As well as this headwind, the group also warned that contract completions with two other companies were taking longer than expected.

As a result, City analysts believe the group will miss revenue expectations for the year by around £20m, which is a big deal. Analysts have slashed EPS expectations for the year from 11.4p to 5.5p. Even at this lower level, the stock looks expensive, trading at 26 times forward earnings. 

I like to avoid companies where the loss of just one client can make or break a year of performance and Alfa is no different. In my view, the risk here far outweighs the reward. 

Failed acquisition 

In 2017, Animalcare Group (LSE: ANCR) completed what management initially described as a transformative acquisition with Belgian veterinary business Ecuphar.

The deal has been transformative, but not in the way management or shareholders might have hoped. Integration is proving tricky. Full-year results for 2017 showed a decline in EBITDA margins from 13% to 11% as difficult trading conditions forced the enlarged enterprise to slash prices. Cash profit fell 9%.

Investors have lost trust in the highly-rated company. The shares are down 50% year-to-date and nearly 60% since the merger. The valuation has fallen from a forward P/E of 31 in September 2017 to just 11.7 today. The one good thing about the decline is the stock now looks cheap, but I would wait for further evidence that the business is back on track before buying.

The post The 3 worst growth stocks of 2018 (so far) appeared first on The Twelfth Magpie.

More reading

• How much is needed in an ISA to unlock £1,220 of passive income a year?
• Forget meal deals! Here’s how £8 a day could be worth £357,000
• With a 7% yield, is this dividend share a no-brainer?
• The CMC Markets share price is smashing the FTSE 100 in 2026. Is there an opportunity here?
• With a yield of 6.8% and a P/E ratio of 12.1, is this a dirt cheap FTSE 250 stock to consider?

Rupert Hargreaves owns no share mentioned. The Motley Fool UK owns shares of and has recommended ASOS. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.