ASX 200 building and construction shares could receive a boost with the federal government announcing a planned $688 million HomeBuilder stimulus package. The income tested program is expected to last 6 months and aims to support jobs and activity in the construction sector.

Under the program, eligible individuals will receive a $25,000 cash grant to spend on constructing a new home or on renovations to their existing property. The stimulus package comes amid a projected decline in housing construction activity as a result of the coronavirus pandemic.

Here are 2 ASX 200 building shares that could get a boost following the roll out of the HomeBuilder stimulus package.

Brickworks Limited (ASX :BKW)

Brickworks is a leading supplier of bricks, masonry and roof tiles across Australia and North America. The ASX 200 company boasts 26 manufacturing sites and over 40 design centres throughout Australia. It is one of the world’s largest building materials manufacturers and has a highly diverse product portfolio.

Brickworks recently provided a trading update which highlighted the impact of coronavirus on the construction sector. The company reported a 10% decline in sales revenue in Australia for the 4 months to May 2020. In addition, Brickworks reported a 30% decline in sales activity for its US operations during April and May.

Despite this bad news, the Brickworks share price has jumped more than 38% from its lows in April. It could also be poised to surge further following execution of the government’s stimulus package. 

CSR Limited (ASX: CSR)

CSR offers a wide range of products used in the later stages of home construction and renovation. The company produces notable brands such as Gyprock plasterboard, PGH bricks, Hebel concrete blocks and Bradford insulation.

CSR released its annual report in mid-May for its financial year ending 31 March. The ASX 200 company reported a 6% fall in building products revenue for the year. It also reported a 3% decline in revenue from building products for the first 6 weeks of its 2021 financial year compared to the prior corresponding period.

Furthermore, CSR scrapped its final dividend in response to the coronavirus crisis in order to conserve capital. Due to the uncertain and tough economic conditions, CSR has not provided profit forecasts for the current financial year. Notwithstanding the uncertainty, the CSR share price has rebounded more than 57% from its March low.

Are these ASX 200 building shares in the buy zone?

In my opinion, ASX 200 building and construction share prices could experience a short-term boost. However, I feel the long-term outlook remains extremely uncertain. Due to the nature of contract life cycles in the sector, impacts of coronavirus could still be felt in 6 to 12 months’ time. In addition, with the Australian economy facing a recession, it’s unknown how long the government’s cash grant will be able to help support the building and construction industry.

More reading

• Have $10,000? This is where I’d invest it into ASX shares
• Meet the ASX stocks to benefit from the new $688m home stimulus
• 3 Warren Buffett ASX dividend shares you can buy right now
• Where should you invest $1,000 in ASX shares?
• This embattled ASX 200 company could be the next M&A target

Motley Fool contributor Nikhil Gangaram has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Brickworks. 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.

The post Will the HomeBuilder stimulus boost ASX 200 building shares? appeared first on Motley Fool Australia.

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Due to the favourable tailwinds that it is experiencing, I believe the healthcare sector is a great place to invest with a long term view.

But with so many options for investors to choose from, which ones should you be buying?

Below are three ASX healthcare shares I think could provide stellar returns for investors over the long term:

Avita Medical Ltd (ASX: AVH)

The first healthcare share to look at is Avita Medical. It is a global regenerative medicine company which I think has a lot of potential. It is best known for its Recell system, which is a spray-on skin treatment used for burns victims. Demand for its offering has been growing very strongly over the last couple of years. This led to the company recently revealing an 84% increase in revenue for the 9 months ending 31 March 2020. While the company has a huge market opportunity already, it is seeking to extend Recell’s use to treat vitiligo. Combined, the company has a significant runway for growth over the next decade.

Pro Medicus Limited (ASX: PME)

Another ASX healthcare share to consider buying is Pro Medicus. It provides a full range of radiology IT software and services to hospitals, imaging centres, and healthcare groups. The key product in its portfolio is the increasingly popular Visage 7 Enterprise Imaging Platform. This platform delivers fast, multi-dimensional images streamed via an intelligent thin-client viewer. Demand for Visage 7 has been growing strongly in recent years and continues to this day. In fact, on Monday Pro Medicus announced a major new contract with one of the highest rated hospitals in the United States. I believe this is a testament to the quality of its offering. It also revealed that it has a number of other sales opportunities in its pipeline that it is working on.

Ramsay Health Care Limited (ASX: RHC)

A final healthcare share to look at is Ramsay Health Care. It is a global private hospital operator with 480 facilities across 11 countries. The next 12 months are not going to be easy for Ramsay due to both the pandemic and overall tough trading conditions in the private hospital space. However, I believe these headwinds will ease over the medium term and Ramsay’s growth will accelerate. Especially given how well-placed the company is to capture the expected increase in demand for healthcare services due to ageing populations.

More reading

• Why Austal, Evolution, Newcrest, & Pro Medicus are tumbling lower
• 2 cheap ASX 200 shares to buy right now
• Why Evolution, Iress, Pro Medicus, & Vicinity shares are dropping lower
• ASX 200 up 0.6%: NAB charges higher, ACCC investigates Qantas acquisition
• Why this exciting ASX 200 tech share is pushing higher on Monday

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Pro Medicus Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Avita Medical Limited. The Motley Fool Australia has recommended Avita Medical Limited, Pro Medicus Ltd., and Ramsay Health Care 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.

The post These ASX healthcare shares could be long term market beaters appeared first on Motley Fool Australia.

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