The recent market volatility has led to a good number of blue chip shares being dragged lower over the last few weeks.
Is this a buying opportunity for the three shares listed below?
CSL Limited (ASX: CSL)
Another decline on Tuesday means that this biopharmaceutical company's shares have now fallen 22% from their 52-week high. Market volatility and rising bond yields have been largely to blame for this decline. And while its shares could still drift lower from here, I think they are a strong buy if you're prepared to hold onto them for the long-term. After all, I believe CSL is a high quality company and capable of growing at an above-average rate over the next decade thanks to its growing plasma collection network, strong core business, and fast-growing influenza business.
Telstra Corporation Ltd (ASX: TLS)
The Telstra share price has been reasonably stable this month due to investors moving out of higher risk options into defensive areas like the telco sector. While I do see a lot of value in the company's shares at these levels and believe its 2022 strategy has a lot of promise, I wouldn't be a buyer of its shares until its dividend plans for FY 2019 have been revealed. My fear is that a more severe than expected dividend cut could put pressure on its share price.
WiseTech Global Ltd (ASX: WTC)
WiseTech Global has been one of the worst performers on the market in recent weeks due to the tech selloff. The logistics platform provider's shares dropped lower on Tuesday, meaning they have now lost 34% of their value since peaking at $25.00 at the end of August. Due to the sky high multiples that its shares were trading on, a pullback was inevitable when bond yields widened. The big question now is whether this has put them in the buy zone? I'm not sure that it has. At over 80x estimated forward earnings, I fear WiseTech Global's shares could still be dragged notably lower if the tech sector continues to wobble. In light of this, although I think it is an amazing company, I'm going to sit this one out and wait for a better entry point.
