There are a couple of ASX 200 biotech shares that could be in the buy zone right now. The S&P/ASX 200 Index (ASX: XJO) is down -10.25% this year but many Aussie healthcare companies have surged in value.

This is partly due to the nature of the coronavirus pandemic. Many healthcare services are in high demand even as the economy falls on hard times.

While not all Aussie biotech companies are created equal, here are a couple of my top picks to buy today.

2 ASX 200 biotech shares to buy today

I like the look of CSL Limited (ASX: CSL) right now. CSL is one of the largest companies by market capitalisation on the ASX and weighs in at $129.55 billion.

The ASX 200 biotech share doesn’t always look like good value. However, CSL shares have dropped below the $300 per share mark and are trading at $276.45 at the time of writing.

We’ve seen some strong investor support around the $270-280 per share mark in recent months. That could mean now is a good chance to buy CSL at a 16.75% discount to its all-time high.

It’s not just the Aussie biotech giant that is in the buy zone. I also like the look of Polynovo Ltd (ASX: PNV) shares right now.

Polynovo designs develops and manufactures dermal regeneration solutions using its patented NovoSorb BTM biodegradable polymer technology.

In plain English, the ASX 200 biotech share develops solutions for burns, skin grafts and similar medical issues.

The Polynovo share price crashed hard in the recent bear market. In fact, shares in the company fell 56.29% from 25 February to 23 March. 

However, Polynovo’s value has surged higher in recent months. The ASX 200 biotech share boasts a market capitalisation of $1.75 billion and has climbed 94.70% since that March 23 bottom.

Foolish takeaway

I think for buy and hold investors, both CSL and Polynovo could be good value buys.

Both ASX 200 biotech shares have a track record of success and a solid growth outlook.

I would say CSL is more of a tactical buy for $285.33 per share. In contrast, the Polynovo share price has already rebounded but I think it’s a potential ASX 50 share in the coming decade.

More reading

• Why CSL, Elders, Evolution, & Xero shares are dropping lower
• 3 ASX 200 shares to watch this week
• Is the Webjet share price a cheap buy today?
• ASX 200 Weekly Wrap: ASX bulls crash through 6,000 points
• Cheap ASX 200 retail shares to buy today

Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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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It was a strong week for ASX shares as the S&P/ASX 200 Index (ASX: XJO) surged 4.22% higher last week to close just shy of 6,000 points.

The benchmark Aussie index finished the week at 5,998.70 points and was led higher by many Aussie blue chips including the banks.

Last week I was watching Bendigo and Adelaide Bank Ltd (ASX: BEN), Flight Centre Travel Group Ltd (ASX: FLT) and St Barbara Ltd (ASX: SBM).

The Bendigo share price was one of last week’s biggest moving as it rocketed 19.02% higher including a 4.72% gain on Friday. Flight Centre shares also surged, gaining 17.66%, while St Barbara shares were sold-off in the bullish ASX 200 share market and closed the week down 3.85%.

After a big week for last week’s top picks, here are 3 shares I’ll be watching in the week ahead.

3 ASX 200 shares to watch this week

I always like to watch some of the biggest movers from the previous week. That means Stockland Corporation Ltd (ASX: SGP) is in my sights.

The Stockland share price rocketed 10.92% last week and is up another 4.04% at the time of writing. The Aussie real estate investment trust (REIT) seems to be climbing thanks to investor optimism.

Stockland has interests in retail, office and residential real estate. There are a lot of factors at play in all of those areas right now. I think this ASX 200 REIT could be set to recover further if the re-opening of the economy continues at a cracking pace.

Another ASX 200 share I’ve got my eye on is SkyCity Entertainment Group Limited (ASX: SKC). SkyCity operates a number of hotels and wagering businesses that are starting to see eased restrictions.

That could be good news for SkyCity earnings in FY20 and FY21. The entertainment share is up a whopping 8.96% in morning trade so far and will be well worth watching this week.

I also think it’s hard to ignore the ASX banks right now. The Westpac Banking Corp (ASX: WBC) share price is one I’m watching this week.

The big four bank’s shares have some strong momentum after rocketing 9.12% higher last week. Westpac shares have shot out of the gates this morning to be up more than 5% at the time of writing.

I’d expect investors to continue buying high-quality shares this week. Westpac shares are still down 22.45% for the year and could have further to go in 2020.

Foolish takeaway

These are just a few of the ASX 200 shares I’m watching at the moment. It’s important to focus on the long-term investment horizon rather than getting too caught up in daily or weekly moves.

There might be tactical buying opportunities on offer from time to time. However, I believe a buy and hold strategy is still the ticket to long-term wealth.

More reading

• 2 ASX 200 biotech shares to consider buying today
• Is the Webjet share price a cheap buy today?
• ASX 200 Weekly Wrap: ASX bulls crash through 6,000 points
• ‘Westpac share price undervalued’, says analyst
• Cheap ASX 200 retail shares to buy today

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Flight Centre Travel Group Limited and Sky City Entertainment Group Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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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The share price of Wesfarmers Ltd (ASX: WES) will be on watch this morning after it provided the market with a retail trading update for its performance in 2H20 so far.

The group revealed today that it has witnessed particularly strong demand from both its Bunnings and Officeworks stores.

The Wesfarmers share price has bounced back strongly since late March. The group’s share price has risen from $31.02 on 23 March to close at $41.71 last Friday. That’s an impressive increase of 34.5%.

Bunnings and Officeworks sales grow strongly

Compared to sales in the first half of the year (1H20), sales for Bunnings have risen very strongly so far in the current half (2H20). Bunning’s sales have risen 19.2% since the beginning of the year. This compares to only 5.8% during 1H20.  For the FY2020 year-to-date, sales have also risen strongly for Bunnings. They were up by 11.3% compared to the prior corresponding period.

As a result of the coronavirus crisis, Australians have continued to spend more on goods to assist them in working and learning in a home environment.

The performance of Officeworks was also very strong. Sales were up by 27.8% for 2H20 to date, compared to only 11.5% in 1H20. FY2020 sales to date were also strongly up by 19.3% for Officeworks.

I believe that the strong performance of both Bunnings and Officeworks has made a significant contribution to Wesfarmers’ recent strong share price growth.

Pure online retailer Catch sees sales surge

The star performer for Wesfarmers in recent months has been its pure online offering in Catch.

Online sales for Catch have risen by a massive 68.7% in the half-year to date. This compares to only 21.4% in 1H20.

There has been a recent surge in online sales due to the coronavirus. All of Wesfarmers’ retail businesses witnessed massive combined total online sales growth of 89% for the half-year to date.

Wesfarmers’ online offerings have seen strong growth over the past few years.

It is quite likely that consumer habits are changing permanently. Many Australians may continue to choose the online channel over bricks and mortar stores in the years ahead due to its convenience and price competitiveness.

Where to now for the Wesfarmers share price?

As already mentioned, the group’s share price growth since late March has been very strong. However, I believe that Wesfarmers will be challenged to keep growing at this pace in the months ahead. Wesfarmers itself acknowledged today that it is uncertain if this sales growth can continue for the rest of the year. As government lockdown measures continue to ease, shopping patterns are likely to continue to get back to normal sooner rather than later.

More reading

• ASX 200 Weekly Wrap: ASX bulls crash through 6,000 points
• 3 high quality ASX dividend shares you can buy today
• Want high-paying dividends? Try Wesfarmers shares and these 2 other ASX options
• How to replace your entire wage with dividends
• Is this ASX small cap the best placed to benefit from the $700m HomeBuilder grant?

Motley Fool contributor Phil Harpur has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Wesfarmers Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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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