CSL Limited (ASX: CSL) is now well and truly in the lead to become Australia's first stock to hit the $100 mark with the shares currently trading for $90.54.
Although the stock has retreated by over 6% in the last three weeks or so, the other contenders also considered a chance to take the mantle have fallen even further.
Cochlear Limited (ASX: COH), for example, is now trading at $82.65, down from $93.97, while Macquarie Group Ltd (ASX: MQG) has fallen to $77.56. Rio Tinto Limited (ASX: RIO) was once a possibility, but its shares are now trading at $59.32 and could be set for further falls should the iron ore price suddenly plummet.
Prior to today, Commonwealth Bank of Australia (ASX: CBA) could also have been considered a good chance but there are signs the bank might not be as healthy as the market has come to believe. The bank stock, which hit a high of $96.69 in March, has fallen 4.5% today to just $84.22 on the back of a lacklustre third-quarter earnings result. While some investors could view the setback as an opportunity to buy, others may begin to realise how overpriced the stock has actually become.
At today's price, CSL still presents as a reasonable investment prospect and one that should benefit from a weaker Australian dollar given its international operations. As it stands, Morgans has a $101.79 price target on the stock, while UBS raised the mark last month, forecasting a price of $105.50.
Indeed, even if CSL does hit the $100 mark first, there is no reason to suggest the stock can't climb any higher in the long run. While it maintains a defensive earnings stream, it also has reasonable growth prospects (locally and internationally) and consistently rewards investors with share buybacks and a small dividend yield.
An even better bet than CSL Limited
CSL Limited could be a great addition to your long-term portfolio but given its size, it will be difficult for it to grow as fast as some of the market's other up-and-comers.
