2 ASX shares in healthcare ripe to buy right now: experts

Two happy scientists analysing test results.Two happy scientists analysing test results.

Investors are currently in a situation where they may have to withstand an economic downturn.

Fortunately there are still some ASX shares one can buy that could prove resilient through such times.

Healthcare, some experts say, is one such sector.

After all, people still have to treat their injuries and illnesses even if the economy is not humming.

And luckily, on the ASX, the health sector has already been found to be one that is experiencing a resurgence after trending down until last month.

“I think the healthcare sector is going to do pretty well,” Switzer Financial Group director Paul Rickard told Switzer TV Investing last week.

“In fact, it’s been doing well in the last four to six weeks.”

Two experts this week picked out two of the best healthcare stocks that they would buy at the moment:

‘A great record of positive surprises’

Fairmont Equities managing director Michael Gable likes the look of CSL Limited (ASX: CSL) at the moment.

He noted that ever since the stock price hit a trough in February, it has been inching upwards despite the rest of the market plunging.

“Healthcare stocks have recently found solid buying support because of reliable earnings,” Gable told The Bull.

“The share price of this blood products company recently pushed through a major resistance level near $280. Consequently, we expect the price to rally towards last year’s peak near $320.”

CSL shares closed Wednesday at $291.23.

Rickard reminded investors that CSL has, in the past, enjoyed decent investor support during earnings seasons.

“Healthcare companies have traditionally done really well in reporting season,” he said last week.

“Companies like CSL have a great record of positive surprises.”

‘Quality defensive exposure’

Baker young managed portfolio analyst Toby Grimm is a fan of Ramsay Health Care Limited (ASX: RHC).

“The private hospital operator offers quality defensive exposure to ageing populations and expanding healthcare services,” he said.

“While still working through pandemic headwinds, we see strong recovery potential ahead, as suggested by a non-binding, conditional takeover bid from a consortium of investors led by US private equity giant KKR at $88 a share.”

The share price has cooled off since that offer in April, to now trade around the $70 mark.

Other analysts are somewhat divided over Ramsay.

According to CMC Markets, five out of 12 professional investors rate the stock as a buy. Five recommend a hold while two reckon it’s time to sell.

The post 2 ASX shares in healthcare ripe to buy right now: experts appeared first on The Motley Fool Australia.

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 over ten 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

See The 5 Stocks
*Returns as of July 7 2022

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);

More reading

Motley Fool contributor Tony Yoo has positions in CSL Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL Ltd. The Motley Fool Australia has recommended Ramsay Health Care Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/BLRmCy6

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s