The CSL Limited (ASX: CSL) share price has continued its poor run on Thursday and fallen notably lower along with the market.
The biopharmaceutical company’s shares finished the day 4% lower at $174.69 today, meaning they have now lost 25% of their value since peaking at $232.69 at the start of September.
Is the CSL share price in the buy zone?
After losing a quarter of their value over the last six to seven weeks, I think CSL’s shares are well and truly in the buy zone if you’re a patient buy and hold investor.
But that’s not to say that they have necessarily bottomed at this level. If the market volatility continues over the coming weeks or months, then there’s every chance that this star share could be dragged even lower. After all, its shares do trade at a significant premium to the market average.
However, if you’re prepared to hold onto them for the next decade, I wouldn’t let a potential 10% pullback from here put you off making an investment.
Over the last decade CSL’s shares have provided investors with an average annual total return of 19.7%. And due to the quality of its operations, management team, and the growing healthcare market it operates in, I believe it has a strong chance of being a market-beater again over the next decade.
What else is a buy?
As well as CSL, I think the recent pullbacks in the share prices of hearing solutions specialist Cochlear Limited (ASX: COH) and sleep treatment company ResMed Inc. (ASX: RMD) could have created a buying opportunity for investors.
Though, as with CSL, there’s every chance that their respective shares will go lower before going higher again. But it certainly could be worth being patient given their long-term growth potential.
Another high quality growth share that has been beaten down recently is named here. I believe it is also in the bargain bin right now and worth considering.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Cochlear Ltd. and ResMed Inc. 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.