These pummeled ASX healthcare shares have both endured brutal share price declines over the past year.

CSL Ltd (ASX: CSL) shares started the week down 0.6% to $122.61. Despite rebounding 13% over the past month, they’re still down around 51% over the past 12 months. Cochlear Ltd (ASX: COH) shares slipped 0.4% on Monday to $119.00, leaving them up 4% over the past month but down an even steeper 61% over the past year.

So, are these former market darlings now genuine buying opportunities or value traps?

CSL: Waiting for earnings to recover

For decades, this $59 billion ASX healthcare share earned its reputation as one of the ASX’s highest-quality companies, driven by global leadership in plasma therapies and a long history of consistent earnings growth.

That reputation has taken a hit. A series of earnings downgrades, leadership changes, and around US$5 billion of non-cash impairments tied largely to the CSL Vifor acquisition have weighed heavily on investor sentiment.

The latest disappointment came in May, when management guided FY26 revenue of approximately US$15.2 billion and NPAT of around US$3.1 billion, both below market expectations. The company also flagged another US$5 billion of non-cash impairments across FY26 and FY27.

Despite that, analysts aren’t entirely bearish. According to TradingView data, 10 of the 18 brokers covering CSL now rate the stock as a hold, while the remaining eight have buy or strong buy recommendations. The average price target sits at $138.88, implying around 13% upside.

UBS remains among the bulls with a $158 target price, arguing much of the bad news surrounding Vifor is already reflected in the share price. The most optimistic analysts see gains of around 60% over the next year.

Cochlear: A temporary stumble?

April marked one of the toughest periods in Cochlear’s history.

The hearing implant leader shocked investors after reporting weaker-than-expected demand across developed markets and disruption to shipments caused by conflict in the Middle East.

Management of the ASX healthcare share slashed FY26 underlying profit guidance from $435 million-$460 million to just $290 million-$330 million, triggering a one-day share price collapse of more than 40%.

Yet the company’s competitive position remains largely intact. Cochlear still controls roughly half the global cochlear implant market, underpinned by decades of product innovation, clinical expertise, and strong relationships with surgeons worldwide.

Its long-term growth opportunity also remains compelling. More than six million people in developed markets are estimated to be eligible for cochlear implants, but only around 3% have received one.

Broker sentiment is cautious. Hold remains the most common TradingView recommendation, with an average target price of $127.14, implying roughly 7% upside.

However, six analysts still rate the shares as a buy or strong buy, with the highest target suggesting upside of around 43%. Two analysts recommend selling, with the lowest target price implying almost 16% downside.

Foolish takeaway

Both ASX healthcare shares remain global leaders with durable competitive advantages, but they are also working through company-specific challenges that have dented investor confidence.

For long-term investors, the sharp share price falls may present an opportunity. However, neither company has yet fully restored market confidence, meaning patience may be required before either regains its former market-leading status.

The post Down 50%+: Are these ASX healthcare shares finally worth buying? appeared first on The Motley Fool Australia.

More reading

• Could CSL shares double from here? Here’s what the experts think
• Here’s why I’d buy and hold CSL and Cochlear shares for 10 years
• Here’s what brokers tip for CSL shares over the next 12 months
• How have CSL shares performed over 10 years?
• Cochlear shares have bounced 16%. Should you buy, hold, or sell now?

Motley Fool contributor Marc Van Dinther 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 CSL and Cochlear. The Motley Fool Australia has recommended CSL and Cochlear. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

It’s never too early to start saving for retirement, and the good news for parents who want to give their children a head start is that, yes, it is possible to set up a superannuation fund for your children.

Superannuation fund selection is the first step

Depending on your child’s age, you might need to shop around to find a fund that allows you to set up accounts for children.

UniSuper, for example, only allows funds to be set up for people aged 15 and above.

Student Super, on the other hand, allows a fund to be set up at any age and charges no administration fees for balances under $1000.

The fund’s Golden Goose Gifting program was specifically set up to make it easy for parents and grandparents to put money into a child’s superannuation account.

Student Super Chief Executive Officer Andrew Moloney says in a video on the fund’s website that Australians generally set up a super fund at about the age of 20, but by setting up a fund early, the benefits of compound interest can accrue for around two decades longer.

In order to set up and contribute into a superannuation fund for a child, it’s necessary to set up a tax file number (TFN) for the child also.

Student Super’s website says, “Once the child’s TFN is added to their account, the parent or guardian will be able to access the details to make a contribution to the child’s super account”.

The magic of compound interest

And the benefits are significant. $1000 contributed when a child is born, compounded over 20 years at 8%, turns into $4661, as calculated on the Moneysmart compound interest calculator.

If $1000 more is added each year, this figure grows to $50,423.

And this isn’t counting the contribution that the Federal Government will make to your child’s super account.

The government makes a co-contribution to superannuation for low-income earners of $500, as long as $1000 in non-concessional (after tax) contributions are made.

As the ATO says:

You don’t need to apply for the super co-contribution. When you lodge your tax return, we will work out if you’re eligible. If your super fund has your tax file number (TFN), we will pay it to your super account automatically.

If $1500 is compounded at 8% over 20 years, the result is $6991; if $1500 is contributed each year for 20 years, the result is a whopping $75,634.

That’s quite the head start, and while super is usually tied up until retirement age, the personal contributions can be withdrawn and used to buy a home under the government’s First Home Super Saver Scheme.

The post How to give your child a $75,000 superannuation head start appeared first on The Motley Fool Australia.

More reading

• Down 50%+: Are these ASX healthcare shares finally worth buying?
• Chemist Warehouse: Are Sigma Healthcare shares a buy, hold, or sell?
• Here are the top 10 ASX 200 shares today
• Are Westpac shares a top buy this week?
• Ophir High Conviction Fund announces FY26 unfranked distribution

Motley Fool contributor Cameron England has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. 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 Scott Phillips.

Bell Potter has been busy running the rule over the Grattan Institute report this month relating to the pharmacy industry.

The broker notes that if the changes suggested were put in place there could be significant implications for Chemist Warehouse owner Sigma Healthcare Ltd (ASX: SIG).

What is in the report?

Bell Potter highlights that the Future Pharmacy report shines light on the inefficiencies of the funding and other arrangements for Community Pharmacy (CP) in Australia. 

It notes that if “either side of politics to embrace the deregulation measures as recommended, earnings patterns for SIG and many of the pharmacies whose earnings are preserved by this pharmacy gerrymander would change forever.”

Commenting on the report, Bell Potter said:

The Grattan report identifies numerous inefficiencies within Australia’s system for CP including pharmacy remuneration and the opacity of data supporting the current structure, however, maximum venom is reserved for the pharmacy ownership laws and location rules. 

The rules are no longer fit for purpose and now act as a handbrake to further competition while preserving the earnings stream of incumbents. The rules also prevent the participation of supermarkets in CP for reasons that are less clear with each passing year.

Thankfully for Sigma Healthcare and its shares is that Bell Potter believes any potential changes to regulations would still be a long way off. It adds:

Whether the Grattan report influences change remains to be seen, however, CP is probably a long way down the Federal Government’s priority list for reform. Additionally, reform in this section of the market is unlikely to generate momentum on polling day, particularly if the Guild and AMA oppose changes as history suggests is likely. For these reasons, the regulatory environment supporting Community Pharmacy and the likes of Sigma Healthcare are unlikely to change.

Should you buy Sigma Healthcare shares?

According to the release, Bell Potter has retained its hold rating and $3.00 price target on the company’s shares. This is just a touch above its current share price of $2.93.

Commenting on its hold rating, the broker said:

Regulatory upheaval in CP is unlikely, nevertheless, investment metrics for SIG are not sufficiently attractive to warrant a Buy rating, particularly with a single payer (the Federal Government) representing a disproportionate level of group revenue. 

The Government’s propensity to alter funding arrangements on short notice with little industry consultation should elevate the risk rating on SIG. We maintain our Hold rating and PT $3.00.

The post Chemist Warehouse: Are Sigma Healthcare shares a buy, hold, or sell? appeared first on The Motley Fool Australia.

More reading

• Buy, hold, sell: Sigma Healthcare, Wisetech Global, CBA shares
• 3 reasons why the ASX share owner of Chemist Warehouse is a buy
• Leading brokers name 3 ASX shares to buy today
• Here are the top 10 ASX 200 shares today
• Here are the top 10 ASX 200 shares today

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. 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 Scott Phillips.