Buy on a low, sell on a high. It’s the mantra of the successful stock investor. But is there ever any exception to the rule? We’ve picked 3 stocks that seem to be defying this age-old adage. Here’s why. CSL Limited (ASX: CSL) The overwhelming consensus on $85.9 billion market cap biopharmaceutical company CSL Limited is – it’s not too late. Sure, the CSL share price might have zoomed up 38% in the last 12 months, but the company has continued to assert itself as one of the ASX’s most quality businesses in that time, with the growth of its…
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Buy on a low, sell on a high.
It’s the mantra of the successful stock investor.
But is there ever any exception to the rule?
We’ve picked 3 stocks that seem to be defying this age-old adage.
CSL Limited (ASX: CSL)
The overwhelming consensus on $85.9 billion market cap biopharmaceutical company CSL Limited is – it’s not too late.
Sure, the CSL share price might have zoomed up 38% in the last 12 months, but the company has continued to assert itself as one of the ASX’s most quality businesses in that time, with the growth of its Seqirus influenza business, gains in its core plasma unit and an impressive pipeline of pharmaceutical products almost assured to see the company continue to book gains for the foreseeable future.
CSL recently increased its expectations of its full-year profit to record levels – with NPAT expected to be in the range of US$1.6 billion to $1.7 billion up between 26% and 28% due to vaccine sales boosted by a severe flu season and bumper sales of its haemophilia products.
Investors are hard-pressed to name a growth stock more impressive than CSL right now, and its clean balance sheet and competitive advantage sure doesn’t hurt either.
If you’ve already got them, hold onto them, if you want them, it’s probably not too late.
Cochlear Limited (ASX: COH)
Healthcare is a burgeoning sector, with the ageing population driving its growth.
Implantable device company Cochlear Limited has a stronghold on its market across Australia, the Asia Pacific, Europe, the Middle East and Africa, to name a few, with more than 20 countries now distributing its products.
There’s plenty of proof this market-leader’s operations will continue to expand – with global demand for its products continually on the up and its lack of viable competitors clearly evident also.
But with the Cochlear share price currently sitting at $198.89 – up from $159.99 at this time last year – is the stock “too expensive” for a current buy-in?
Consensus is that buy and hold opportunities for Cochlear are still relevant, with NPAT for its FY18 expected to be between $240 million and $250 million which would be a rise of between 7% and 12% on FY17.
The market has high expectations on Cochlear, but the company seems to continue to deliver the goods and there’s little evidence that it will deviate from this trajectory going forward.
Macquarie Group Ltd (ASX: MQG)
The big banks are under fire at the moment as the Royal Commission rages on, but Macquarie Group Ltd has always done things a little differently, and the global financial services company has often been referred to as the only banking share you should actually bank on – for this reason.
To start with, Macquarie has a fairly firm focus on infrastructure, with a 10-year dividend growth rate of 12.5% alongside interests in emerging sectors like renewable energy – which could book significant returns in the future.
Macquarie has a history of cashing in on global trends and keeps its own fundamentals tidy with its share price pushing higher in the last week off the back of gains out of the US banking sector.
The $38.4 billion market cap company has certainly done plenty right so far, and it’s showing no signs of a slowdown despite the volatility of the overall climate in its sector.
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Motley Fool contributor Carin Pickworth has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Cochlear Ltd. 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.