As a sector, healthcare has provided some of the strongest returns over the past year. The S&P/ASX 200 Health Care Index (ASX: XHJ) has returned more than 26% over the last 12 months, comfortably outperforming the benchmark indexes for other sectors.

But one ASX healthcare share that has blown this return out of the water is Opthea Ltd (ASX: OPT). Impressively, the Opthea share price has skyrocketed more than 350% compared to this time last year.

Opthea is a developer of novel biologic therapies for the treatment of eye diseases. The company specialises in the treatment of wet age-related macular degeneration (AMD) and diabetic macular edema (DME). Wet AMD is the leading cause of visual impairment in the elderly, while DME is the leading cause of visual impairment in diabetic populations.

What’s put a rocket under the Opthea share price?

Investors have been buying up Opthea shares in a hurry ever since the company delivered strong clinical trial results in August last year.

These results related to the company’s flagship OPT-302 combination therapy for treatment-naïve patients with wet AMD. 

According to the release, the OPT-302 (2.0 mg) combination therapy showed statistical superiority for mean visual acuity – the most accepted and sensitive primary efficacy outcome.

These results are significant given that wet AMD is the leading cause of vision loss in people over the age of 50 across the Western world. And from an investor’s perspective, the current standard of care treatments for wet AMD and DME generated more than US$10 billion of revenue in 2018 – so the addressable market opportunity is significant.

What else has Opthea announced?

Another major announcement came this morning when Opthea reported a further set of trial results. However, this time the results related to the OPT-302 combination therapy for the treatment of DME. 

The phase 2a trial found that when OPT-302 was used in conjunction with existing medication, 52.8% of the refractory DME patients gained ≥ 5 letters of visual acuity after 12 weeks.

“These positive topline Phase 2a results in a second disease indication of DME, build on our extensive prior clinical studies in wet AMD which demonstrated superiority in visual improvement with OPT-302 combination therapy compared to anti-VEGF-A monotherapy standard of care,” said CEO and managing director Dr Megan Baldwin.

While the company viewed the outcome of the phase 2a trial positively, it appears investors were expecting a stronger result. At the time of writing, the Opthea share price is down 9.52%, while the S&P/ASX 200 Index (ASX: XJO) is edging 0.20% higher.

The phase 2a trial is ongoing, with the final participants due to complete the week 24 follow-up visit later this month. The company expects the final outcomes for longer-term safety and treatment durability to be available in the second half of this year.

Meanwhile, Opthea noted that it is continuing to plan for its phase 3 program in wet AMD and progress its manufacturing of OPT-302 for phase 3 clinical trials.

More reading

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• 3 ASX biotech shares that have soared higher today
• 3 quality mid cap ASX shares to buy with $3,000

Motley Fool contributor Cathryn Goh has no position in any of the stocks mentioned. 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 can be challenging times for investors looking to get into the market or add to existing positions. Looking at the recent performance of many S&P/ASX 200 Index (ASX: XJO) and All Ordinaries (ASX: XAO) shares, investors might feel they have missed the boat for buying opportunity. However, here are 2 resilient and incredibly cheap ASX 200 shares which, I believe, are still trading with great opportunity.

1. Tassal Group Limited (ASX: TGR)

Tassal Group is an Australian company engaged in the supply of Atlantic salmon and prawns both in Australia and internationally. It is involved in the full product life cycle from hatching, farming and processing to sales and marketing. 

On 29 April, Taassal commented on the impact of COVID-19 on its business. It noted that while the long-term impacts on the global economy and consumer behaviour are still unknown, the overall market dynamic for salmon remains positive.

Retailer agreements underpin the current domestic pricing while also creating favourable volume levels. Tassal’s domestic wholesale business, however, may face headwinds. This comes as food service businesses such as pubs, clubs, restaurants and cafes may continue experiencing disruptions caused by restrictions. Despite this, the ASX 200 company remains focused on increasing production efficiencies. It will achieve this through the strategic use of exporting whilst maintaining adequate domestic supply. 

From a production perspective, Tassal reports that its salmon biomass growth is exceeding expectations. Furthermore, the company’s optimised pricing should provide increased overall operating and earnings before interest, taxes, depreciation, and amortization (EBITDA) price-per-kilogram returns. This, combined with a focus on more profitable product lines in the domestic and export markets, should translate into increased FY2021 returns for salmon.  

I believe there are many reasons Tassal could be a steady and cheap ASX 200 share for many years to come. It trades at a relatively good price-to-earnings ratio (P/E) of 11.64. This is despite delivering a CAGR of 16.7% for revenue and 12.8% for NPAT over the past 5 years. The company’s history of reliable growth and favourable customer behaviour makes Tassal a good buy at today’s prices. 

2. Credit Corp Group Limited (ASX: CCP) 

Credit Corp specialises in debt purchase and debt collection services. It purchases past-due consumer and small business debts from major banks, utility producers and finance and telecommunication companies. The company operates in Australia, New Zealand and the United States. It works with customers to agree on affordable repayments which improve their credit standing over time while ensuring they can remain active in the community. 

On 29 April, the company provided a market update and proposed equity raising. It had solid metrics leading into the pandemic with Australia and New Zealand debt buying up 9% for the 9 months to March 2020. Its record face value of accounts are under the arrangement of $1.4 billion. Its US debt buying saw collections up 57% and record face value of accounts under arrangement of $0.3 billion. 

However, its collections for April are below pre-COVID-19 expectations. Australia combined with New Zealand and the US have fallen by 15% and 16% respectively. It notes that the medium-term impact on credit-impaired customers may be more severe once temporary government support and community forbearance is withdrawn. 

Its equity raising is focused on strengthening the balance sheet. Under all downside scenarios, Credit Corp’s balance sheet can withstand even the most extreme economic shocks. I believe the company’s improved capital position and history of consistent growth make it a buy at today’s discounted prices. 

Foolish takeaway 

Buying shares that have v-shaped charts is challenging and risky. I believe Tassal Group and Credit Corp are two less volatile businesses and relatively cheap ASX 200 shares which can deliver shareholder value in the medium-long term. 

More reading

• These ASX bank stocks just got upgraded by top brokers to “buy” – and they aren’t the big four
• Does the ASX 200 just follow the US markets?
• ASX 200 up 0.45%: Harvey Norman declares special dividend, gold miners race higher
• Why you can’t afford not to invest in ASX 200 shares in 2020
• These ASX shares could defy the market sell-off this morning

Motley Fool contributor Lina Lim has no position in any of the stocks mentioned. 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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The Commonwealth Bank of Australia (ASX: CBA) share price is trading lower on Wednesday.

In afternoon trade the banking giant’s shares are down 0.65% to $71.73.

Why is the CBA share price in the red?

This decline appears to have been caused by a spot of profit taking in the banking sector today after some stellar gains over the last three weeks.

Prior to today, the CBA share price was up 21% over the previous three weeks.

This actually made it the laggard in the group, with the other big four banks recording even stronger gains over the same period. Though, given how much harder their shares have fallen during the pandemic, this isn’t particularly surprising.

Is anything else weighing on CBA’s shares?

Also potentially weighing on the bank’s shares today was news that Slater & Gordon Limited (ASX: SGH) has filed a class action in the Federal Court.

This class action relates to consumer credit insurance (CCI) for credit cards and personal loans that was sold between 1 January 2010 and 7 March 2018.

The bank has advised that it is reviewing the claim and will update the market when appropriate.

What is the class action?

This class action is similar to one that Slater & Gordon filed against National Australia Bank Ltd (ASX: NAB) for the sale of CCI. That case was recently settled for $49.5 million.

Slater & Gordon commented: “The CBA class action is part of a series of cases following the Banking Royal Commission, which heard that banks were using pressure tactics to sell unnecessary CCI products to customers who were ineligible to claim under the policies. It is the fourth class action Slater and Gordon have issued in relation to CCI products.”

The law firm notes that CBA previously identified that many customers had been sold policies that they were ineligible to claim upon, making them worthless. And while the bank provided refunds to some of their customers, Slater and Gordon believes the remediation program did not adequately compensate customers.

More reading

• Leading brokers name 3 ASX 200 shares to sell today
• Are Aussies still withdrawing cash like crazy?
• How to be like Warren Buffett and not lose money investing in ASX 200 shares
• Afterpay share price overbought says analyst
• Why the CBA share price is lagging its big four cohorts

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. 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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