Insights

Why CSL (ASX:CSL) and this ASX healthcare share are rated as buys

The healthcare sector has been a great place to invest. Could this trend continue?
The post Why CSL (ASX:CSL) and this ASX healthcare share are rated as buys appeared first on The Motley Fool Australia. –

The healthcare sector has been a great place to invest over the last five years. Since this time in 2016, the S&P/ASX 200 Health Care index has risen an impressive 98%.

This compares to a ~34% gain by the S&P/ASX 200 Index (ASX: XJO) over the same period, excluding dividends.

While there’s no guarantee that the sector will continue this outperformance over the next five years, there are a number of positive tailwinds that are supportive of growth. This could make it worth considering a long term investment in the space.

But which ASX healthcare shares should you consider? Here are two that are rated highly:

CSL Limited (ASX: CSL)

CSL is one of the world’s leading biotherapeutics companies. Its shares are up approximately 150% over the last five years due to a number of factors. This includes successful acquisitions, its high level of investment in research and development (R&D) activities, its growing plasma collection network, and its leading therapies and vaccines.

In respect to its therapies, CSL’s portfolio includes lucrative and life-saving products such as Privigen, Hizentra, Idelvion, and Afstyla. These will be added to in the coming years thanks to its almost billion-dollar annual investment in R&D.

One broker that sees value in the CSL share price at present is Credit Suisse. The broker currently has an outperform rating and $315.00 price target on its shares.

Pro Medicus Limited (ASX: PME)

Pro Medicus is a healthcare technology company. It provides healthcare organisations with radiology information systems (RIS), picture archiving and communication systems (PACS), and advanced visualisation solutions.

Thanks to its industry-leading technology and the structural shift away from legacy systems, Pro Medicus has been growing at a strong rate in recent years. Pleasingly, this has continued in FY 2021. For example, during the first half, the company reported a 7.8% increase in revenue to $31.6 million and a 25.9% jump in underlying profit before tax to $18.76 million.

Looking ahead, the company still has a large pipeline of sales opportunities that could be converted in the near future and drive further growth over the next decade.

Goldman Sachs is a fan of Pro Medicus. It currently has a buy rating and $53.80 price target on its shares.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of May 24th 2021

More reading

Top ASX shares to buy in June 2021

4 ASX 200 blue chip shares analysts rate as buys

ASX 200 Weekly Wrap: ASX record highs tumble like… Costa shares

Breaking! ASX 200 hits another record share market high

Is the Pro Medicus (ASX:PME) share price a high-flying opportunity?

The post Why CSL (ASX:CSL) and this ASX healthcare share are rated as buys appeared first on The Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!