2 classic healthcare ASX shares priced to buy now: expert

There has been only one certainty this year — uncertainty.

With fears about inflation, interest rates, energy prices, and recessions scaring off investors, no one knows how many more downward slides the market has left before the clouds clear.

But there is one industry that one could buy into right now without worrying about what might happen in the world or the markets.

“​There is one sector that will fare well in this environment regardless of the macro outcome, and that is healthcare,” Tribeca portfolio manager Jun Bei Liu told Livewire last week. 

Many experts point out that health is spending that continues through difficult economic times and high interest rates. That’s because consumers still need to be healthy even if they don’t buy those flash new shoes.

So if that’s piqued your interest, here are two ASX shares that have been staples in many portfolios that are priced right for entry at the moment:

This company ‘dominates the market’

For Shaw and Partners senior investment advisor Jed Richards, CSL Limited (ASX: CSL) is the classic health investment.

“This blood products company has demonstrated for more than 25 years that it can generate a high rate of return,” Richards told The Bull.

“It’s been leading the global plasma industry and dominates the market.”

The CSL share price has fallen 6.4% since 8 September, opening up a buying opportunity.

“The company’s research and development program will enable CSL to retain its market leading position in innovation,” said Richards.

“The healthcare sector performs well during various economic conditions, as it’s a non-discretionary expense.”

Medallion Financial managing director Michael Wayne last week told The Motley Fool that CSL is one stock he’d buy and just put away for years.

“Essentially, it’s a company which has a plethora of different biotech type projects under the one umbrella. You’re getting exposure to a whole range of potential kickers in growth.”

Forecast to grow market share in the long term 

Richards also picked sleep respiratory device maker Resmed CDI (ASX: RMD) for praise.

“The popularity of this respiratory device company has grown after competitor Koninklijke Philips NV (AMS: PHIA) announced a product recall last year.”

The ResMed share price has rocketed 23.6% since late May.

“The Philips recall has been factored into ResMed’s share price,” said Richards.

“But, longer term, we still expect the impact from the recall to enable ResMed to increase and sustain market share in the respiratory devices market.”

The Motley Fool reported last week that Goldman Sachs also has a buy rating on ResMed, as do 14 out of 23 analysts surveyed on CMC Markets.

The post 2 classic healthcare ASX shares priced to buy now: expert appeared first on The Motley Fool Australia.

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More reading

• 3 ASX 200 shares that turned a $5,000 investment into $1 million
• Why is the CSL share price dropping today?
• Which ASX All Ords shares could perform well in a recession?
• Could CSL shares capitalise on the next pandemic?
• Here are 2 blue chip ASX 200 shares to add to your portfolio: brokers

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

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