A spike in coronavirus cases in Victoria has triggered fears of a potential 'second wave' of infections. As a result, some supermarkets have re-introduced purchase limits on certain items as panic buyers swoop in. The fear has not only been restricted to shoppers, with global financial markets also seeing an increase in volatility.
Here are 2 ASX shares that could help your portfolio ride out a second wave of coronavirus infections.
Sonic Healthcare Limited (ASX: SHL)
Sonic Healthcare is the 3rd largest provide of clinical laboratory services in the world, with pathology and radiology services in Australia and 7 other countries. The coronavirus pandemic saw a drastic fall in pathology testing volumes as a result of reduced referrals from doctors and government-imposed restrictions.
The Sonic share price has surged more than 48% from its low in late March and could be poised to go higher following a recent announcement from the company. Earlier this week, Sonic released a better than expected trading update with the company now expecting full-year 2020 underlying earnings before interest, tax, depreciation and amortisation (EBITDA) to be in-line with last year.
With fears of a second wave growing, Sonic could see a further recovery in volumes and revenue as the company continues coronavirus testing. Sonic currently plays a crucial front-line role in Australia, the US and Europe by testing thousands of patients each day for COVID-19.
ResMed Inc (ASX: RMD)
The ResMed share price is currently trading at all-time highs following a surge in demand for the company's ventilators. In the 3 months to 31 March 31, ResMed tripled its ventilator production, producing more than 52,000 units in order to fulfil an urgent contract from the Australian Government.
ResMed went on to provide around 5500 invasive and non-invasive ventilators to Australia's national stockpile. In addition, ResMed was one of the 6 companies named to help facilitate the production and supply of ventilators as the US after the country initiated its Defence Production Act.
With fears of a second wave of coronavirus infections emerging, the ResMed share price could see further upside as demand for ventilation treatments and respiratory humidifiers increase.
Should you buy?
In my opinion, Australia has managed the coronavirus pandemic well thanks to its lockdown procedures and effective testing capabilities. However, with restrictions easing, there is a possibility of a second wave of infections. As a result, I think that both Sonic Healthcare and ResMed would be 2 ASX shares that could provide your portfolio with resilience if volatility picks up.
