An ASX blue-chip healthcare share to buy and hold forever

The ASX healthcare sector has provided stellar returns to investors over the past decade and there continues to be a range of high-quality companies worth considering for your portfolio. Here is why I think CSL Limited (ASX: CSL) is one of them.

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The ASX healthcare sector has provided stellar returns to investors over the past decade and there continues to be a range of high-quality companies worth considering for your portfolio.  I believe this ASX blue-chip healthcare share is worth considering:

CSL Limited (ASX: CSL)

CSL Limited is a global biotechnology manufacturer that researches, develops, and markets products to treat and prevent rare and serious diseases.

CSL has a broad range of products in its portfolio that generate revenue across different therapeutic groups.  There is good diversification in earnings through the different groups, which include: Immunoglobulins, Haemophilia, Albumin, and specialty products.

Along with this, CSL consistently has a pipeline of research and development projects to promote further growth down the track.  In its half-yearly results presentation, CSL alluded to five new products moving into the human trial phase which demonstrates the company's innovation.

The CSL share price has come down significantly off its 52-week high of $232 after slightly softer than expected results.  It currently has a P/E ratio of 32.5 which may look expensive, but this is due to investors continuing to expect a fast growth rate in earnings, which currently sits at a healthy $5 per share.

Total revenue was up 11% from the corresponding period in FY18 and NPAT grew by 10%.  Return on invested capital was slightly down at 29.9%.

The outlook for FY2019 indicates that CSL expects strong demand for its therapies to continue.  Seqirus demand is expected to be lower in this upcoming half due to seasonality, as the northern hemisphere has greater demand for this flu treatment and that part of the world is heading into warmer seasons.  Along with this, CSL expects FY2019 NPAT to be at the top end of the guidance range.

Foolish Takeaway

Investors can easily be caught up in trying to pick beaten down shares in low-quality companies, hoping for an inspirational comeback story.  CSL Limited is a star quality company which has shown time after time that it can create new products, launch them successfully, increase earnings and repeat the process.

I think the CSL share price will continue to succeed long into the future and would be comfortable to buy and hold at any time.  This recent announcement seems to have opened a window of opportunity for investors to buy in.

If you don't think CSL Limited is the healthcare company for you, I would consider researching Cochlear Limited (ASX: COH).

Motley Fool contributor Michael Guinery owns shares in CSL Limited. 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.

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