Nanosonics Ltd. (ASX: NAN) shares have been climbing higher in recent years.
In fact, the Nanosonics share price has rocketed nearly 300% higher in the last 5 years to $6.26 per share.
Despite the coronavirus pandemic hitting ASX shares hard, Nanosonics shares are down just 1.42% in 2020. But does that mean you should buy in for defensive exposure in the current market?
Are Nanosonics shares are a good defensive buy?
It's one thing for ASX shares to climb higher when times are good, it's another thing entirely to maintain their value when times get tough.
That's why shares in defensive sectors like healthcare, energy and consumer staples can trade at a premium to their peers.
So far in 2020, Nanosonics shares are displaying these defensive qualities. A quick look at the group's operations may give us an insight into why that's the case.
Nanosonics' flagship trophon technology reduces the risk cross-contamination of patients in a healthcare setting. Given the nature of the COVID-19 pandemic, I think Nanosonics could have a big part to play in Aussie hospitals.
The current environment could also help Nanosonics shares climb higher on the back of strong earnings. While many Aussie corporates are slashing earnings and dividends, Nanosonics could be in a position to hold steady.
However, the current share market is incredibly volatile. There are still many hurdles still to come as Australia grapples with the virus and I'm looking ahead to the August reporting season already.
Is now the time to buy?
If you're a buy and hold investor, I think Nanosonics shares could be worth a look in 2020. However, it's easy to get caught up in looking for short-term bargains in the current circumstances.
I think it's best to take a deep breath and consider why you're investing. If the answer is for your long-term future and retirement plans, then that's a good place to be.
Nanosonics shares are holding their value in 2020, which is certainly a big bonus. However, I don't think it will be paying its first dividend to shareholders anytime soon given the current environment.
