The last 30 days have been good to the CSL Limited (ASX: CSL) share price.
Its gained 4.97% over the month to today, despite releasing no news to the market. In fact, the last time the ASX heard price-sensitive news from CSL was back in early May.
Right now, the CSL share price is $292.73.
Let’s take a look at what’s been driving it lately.
What’s up with the CSL share price?
It’s been a quiet, yet productive month on the ASX for CSL.
While it has been in and out of the news due to its contract to produce AstraZeneca‘s COVID-19 vaccine, the company itself hasn’t announced anything.
So, it’s a mystery as to why the CSL share price is gaining. Or is it? Here are two happenings that might explain why the healthcare giant’s stock is surging.
Australian dollar
CSL is an Australian company, but most of its profit comes from overseas.
In financial year 2020, only 1.5% of CSL’s external operating revenue came from Australia.
Most of its income came from the United States. And right now, $1 Australian is only getting US$0.73.
That means when CSL earns income in US dollars, it gets more Aussie bucks back in its pocket. Although, the company does report in US dollars, so we likely won’t see the impact of the currency fluctuation in its upcoming full year report.
mRNA possibility
It’s also less than a month since the federal government’s approach to the market, calling for companies to submit their interest in creating mRNA vaccines, closed to new applicants.
According to reporting by ABC News, Industry Minister Christian Porter confirmed CSL has put itself forward to be considered as an mRNA vaccine manufacturer.
The anticipation of finding out who has won the federal government’s favour might also be boosting the CSL share price.
Of course, CSL already makes the AstraZeneca vaccine in its Melbourne facility.
CSL share price snapshot
The month that’s been has added to CSL’s strong performance on the ASX.
The CSL share price is currently 2% higher than it was at the start of 2021. It has also gained 3% since this time last year.
The post Here’s why the CSL (ASX:CSL) share price is up 5% in a month appeared first on The Motley Fool Australia.
Should you invest $1,000 in CSL right now?
Before you consider CSL, you’ll want to hear this.
Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and CSL wasn’t one of them.
The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.
*Returns as of May 24th 2021
More reading
- How does the CSL (ASX:CSL) share price perform during lockdowns?
- 5 ASX shares to hold for 5 years
- ASX 200 Weekly Wrap: Blockbuster Afterpay deal turbocharges ASX to new record highs
- If you invested $1000 in CSL (ASX:CSL) shares a decade ago, this is how much they would be worth now
- How owning too much Afterpay (ASX:APT) was our biggest regret
Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended CSL Ltd. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
from The Motley Fool Australia https://ift.tt/3sbifoI
Leave a Reply