Two of the biggest ASX healthcare stocks by market cap have been heavily sold off in 2026.
At the time of writing:
These heavy sell-offs have been a large contributor to the overall fall of the S&P/ASX 200 Health Care Index (ASX: XHJ) which is down 22% in that same period.Â
After such a strong decline, many brokers and analysts have re-rated and adjusted their outlooks on these ASX healthcare stocks.
Let’s see which is attracting more optimism right now.
Pro Medicus
Pro Medicus provides medical imaging technology globally. The company is recognised as a leading supplier of radiology information systems (RIS), picture archiving and communication systems (PACS), and advanced visualisation solutions for medical practices and hospitals.
It sits within the top 5 largest ASX healthcare companies by market cap.
However it has suffered a brutal decline over the last year, falling almost 60% from its 12-month highs reached last July, when shares were trading for $330.
Yesterday, after another decline, it closed at $138.12 per share.
General consensus is that this ASX healthcare stock is now undervalued.
Yesterday, Medallion Financial Group cited recent contract renewals on higher fees and recent share price weakness as tailwinds for the company.
Analysts at Morgans have also recently retained their buy rating on this health imaging technology company’s shares with a price target of $210.00.
The broker also is bullish on the company thanks to contract newsflow since February which has been “exceptional”.
We re-emphasise our positive long-term conviction on the name although lower our valuation to reflect current but potentially fleeting headwinds.
From yesterday’s closing price, this target indicates an upside potential of 52%.
Cochlear
Cochlear is the world’s leading cochlear implant device manufacturer with around half of global market share.
Its share price fell a further 2.5% yesterday, taking its year to date fall to 63%.
The bulk of this fall occurred last week following a cut to its earnings outlook.
The announcement sent the stock price plummeting 40% in a single day session.Â
Despite such a heavy fall, sentiment is mixed on what’s next for this ASX healthcare stock.
It closed trading at $95.25 yesterday.
Some recent price targets from experts include:
- Jarden has a share price target of $169 on Cochlear shares
- Macquarie’s 12-month price target is $115 (reduced from $239)
- Morgans has a hold rating and target price of $107.17.
Foolish takeaway
When traditional blue-chip stocks fall significantly, it always attracts attention.
With a long-term view, ASX healthcare shares could be set for a recovery, but several headwinds will need to subside.Â
However, those trying to buy low on these options may need to accept more volatility in the short term.
The post Which beaten down ASX healthcare stock is a better buy right now: Pro Medicus vs Cochlear shares appeared first on The Motley Fool Australia.
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More reading
- Buy, hold, sell: Pro Medicus, Life360, A2 Milk shares
- Why Cochlear, Karoon Energy, Origin Energy, and WiseTech shares are falling today
- Analysts pick 3 ASX 200 stocks to buy
- Top brokers name 3 ASX shares to buy next week
- Down 43% this week, are Cochlear shares now the best bargain buy of the year?
Motley Fool contributor Aaron Bell has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Cochlear and Macquarie Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool Australia has recommended Cochlear and Pro Medicus. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.