CSL bounces higher

The biotech looks to be headed back towards its highs.

a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Blood plasma and vaccine manufacturer CSL (ASX: CSL) looks like it will close out the week with five straight days of gains. After touching an all-time high of $64.70 in May, CSL got caught in the ensuing stock market sell-off which has seen the S&P/ASX 200 Index (Index: ^AXJO) (ASX: XJO) lose around 8%. However over the past four trading sessions investors appeared to have rediscovered their love for CSL sending the share price up over 6% to $61.55.

There is no doubt that CSL is a wonderful company with a superb suite of products. Trading on a forward price-to-earnings multiple over 20 though, the share price does reflect this quality and growth potential. For investors buying in at current lofty prices, the prospects of further growth in the share price may be substantially reduced.

Foolish takeaway

Short-term gyrations in prices can offer up attractive buying opportunities, however investors are best off avoiding the time-zapping pastime of following the moves in share prices too closely. That time can be much better spent discovering companies like CSL, Cochlear (ASX: COH) and Sirtex Medical (ASX: SRX), which over the past five years have seen their earnings grow and their share prices increase 73%, 29% and a staggering 246% respectively.

Don't want to risk overpaying? In the market for high yielding ASX shares? Get "3 Stocks for the Great Dividend Boom" in our special FREE report. Click here now to find out the names, stock symbols, and full research for our three favourite income ideas, all completely free!

More reading


Motley Fool contributor Tim McArthur does not own shares in any of the companies mentioned in this article.

More on ⏸️ Investing

Close up of baby looking puzzled
Retail Shares

What has happened to the Baby Bunting (ASX:BBN) share price this year?

It's been a volatile year so far for the Aussie nursery retailer. We take a closer look

Read more »

woman holds sign saying 'we need change' at climate change protest
ETFs

3 ASX ETFs that invest in companies fighting climate change

If you want to shift some of your investments into more ethical companies, exchange-traded funds can offer a good option

Read more »

a jewellery store attendant stands at a cabinet displaying opulent necklaces and earrings featuring diamonds and precious stones.
⏸️ Investing

The Michael Hill (ASX: MHJ) share price poised for growth

Investors will be keeping an eye on the Michael Hill International Limited (ASX: MHJ) share price today. The keen interest…

Read more »

ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward
⏸️ Investing

The Atomos (ASX:AMS) share price is up 15% in a week

The Atomos (ASX: AMS) share price has surged 15% this week. Let's look at what's ahead as the company build…

Read more »

Two people in suits arm wrestle on a black and white chess board.
Retail Shares

How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)?

How does the Temple & Webster (ASX: TPW) share price stack up against rival furniture retailer Nick Scali Limited (ASX:…

Read more »

A medical researcher works on a bichip, indicating share price movement in ASX tech companies
Healthcare Shares

The Aroa (ASX:ARX) share price has surged 60% since its IPO

The Aroa (ASX:ARX) share price has surged 60% since the Polynovo (ASX: PNV) competitor listed on the ASX in July.…

Read more »

asx investor daydreaming about US shares
⏸️ How to Invest

How to buy US shares from Australia right now

If you have been wondering how to buy US shares from Australia to gain exposure from the highly topical market,…

Read more »

⏸️ Investing

Why Fox (NASDAQ:FOX) might hurt News Corp (ASX:NWS) shareholders

News Corporation (ASX: NWS) might be facing some existential threats from its American cousins over the riots on 6 January

Read more »