MENU

CSL pulls back from all-time high

Global blood plasma and biopharmaceutical company CSL  (ASX: CSL) has seen its shares pull back slightly today in an otherwise positive market after touching a new record high of $68.79 yesterday. Amazingly, just 10 years ago investors could have picked the shares up for a split-adjusted price of $5.50. A decade later the stock price has increased nearly 1120%.

While buying 10 years ago would obviously have led to a superb return, so would have purchasing the stock just 12 months ago. In the last year CSL’s share price has rallied 54%, far outperforming the S&P/ASX 200 Index (Index: ^AXJO) (ASX: XJO) which is up 20%. The stock’s performance is not surprising given the full year results CSL reported in August. The company managed to grow sales by 10% on a constant currency basis and to boost earnings per share by 26% on a constant currency basis.

When an investor looks back over a long-term holding period, the benefits of buying a compounding machine like CSL become obvious. Looking to the future, an added benefit of an investment in CSL is the significant growth and earnings potential the company enjoys thanks to its increasing exposure to both foreign countries and to foreign currencies which are strengthening against the Australian dollar.

Big companies like CSL were small once – buying early and staying on for the ride is how investors capture huge gains. Savvy investors are now seeking growth in smaller companies. Discover two stellar small-cap opportunities now, in our brand-new research report, “2 Small Cap Superstars” — simply click here to download your FREE copy.

More reading


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

The 5 mining stocks we’re recommending in 2019…

For decades, Australian mining companies have minted money for individual investors like you and me. But if you believe the pundits and talking heads on TV, those days are long gone. Finito! Behind us forever…

We say nothing could be further from the truth. To earn the really massive returns, you’ve got to fish where others aren’t fishing—and the mining sector could be primed for a resurgence. That’s why top Motley Fool analysts just revealed their exciting new research on 5 ASX miners they believe could help you profit in 2019 and beyond…

Including:

The best way we see to play the global zinc shortage… Our #1 favourite large-cap miner (hint: it’s not BHP)… one early-stage gold miner we think could hit the motherlode… Plus two more surprising companies you probably haven’t heard of yet!

For free access to our brand-new research, simply click here or the link below. But be warned, this research is available free for a limited time only, and we reserve the right to withdraw it at any time.

Click here for your FREE report!