Down 5% so far this week, is the CSL share price a buying opportunity?

CSL shares have nosedived this week.

| More on:
A sad looking scientist sitting and upset about a share price fall.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The CSL Limited (ASX: CSL) share price is down 1.5% at $260 per share in afternoon trade on Wednesday. It has slipped 5% this week, having fallen from $271 at Friday’s market close price.

Meanwhile, the S&P/ASX 200 Health Care Index (ASX: XHJ) has fallen 3% in the same time. The correlation between the two is seen below.

TradingView Chart

CSL standout healthcare pick: fund manager

CSL’s management in particular impresses Sage Capital fund manager Sean Fenton. He said that whilst there are plenty of great Aussie healthcare companies available, CSL is his pick.

“Healthcare is really tough, in the sense that there’s actually a whole bunch of really great Australian companies that have been very successful in healthcare,” he said, speaking to Livewire’s Buy Hold Sell.

“[I]t’s hard to go past the biggest one, CSL, who have grown, exceptionally, in their area,” he told Livewire.

The fund manager went on to comment on several of CSL’s feats over the years. He noted its business strategy successfully diversified away from IVIG and haemophilia products into niche categories.

That’s led to “a lot of value add” to the CSL share price he said.

And they continue to do that. Continue to reinvest, grow their market. Yeah. Their recent acquisition hasn’t completed, Vifor, I think, will also prove to be quite an effective one. So, yeah. Really hard to go past them.

Analysts appear constructive too according to the data. Around 87% of brokers say it’s a buy, with the remaining 13% presently saying it’s a hold, according to Bloomberg data.

In the last 12 months, the CSL share price has slipped 13% into the red, or 10% this year to date.

Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended CSL Ltd. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Healthcare Shares

cochlear happy, share price rise, up, increase
Healthcare Shares

Cochlear share price takes off despite guidance miss

The healthcare giant's stock is surging despite its apparent guidance miss.

Read more »

Healthcare Shares

Fisher & Paykel share price slides hard following FY23 guidance update

The company reaffirmed its posture to the market today.

Read more »

Three Archer Materials scientists wearing white coats and blue gloves dance together in their lab after making a discovery
Healthcare Shares

Buy this ASX 200 company as its costs are actually falling: Firetrail

Rampant inflation means almost every company has to grapple with higher expenses. But here's an exception.

Read more »

Five healthcare workers standing together and smiling.
Healthcare Shares

Medibank share price dips despite dividend boost

The healthcare insurer will pay its biggest final dividend since 2019.

Read more »

Three medical staffers sit at a table and chat happily wearing hospital scrubs
Earnings Results

Pro Medicus share price fails to fly on 44% profit leap

Here's how Pro Medicus dialled up the profits in FY22.

Read more »

A CSL scientist looking through a telescope in a lab
Earnings Results

Telix share price slides despite 726% revenue boost

Investors may be thinking the pharmaceutical company's valuation has peaked after the stock price doubled over the past three months.

Read more »

Broker looking at the share price on her laptop with green and red points in the background.
Broker Notes

Broker gives its verdict on the CSL share price post-FY22 results

Here's what this broker is saying about the CSL share price...

Read more »

An older woman tries to listen by cupping her ear.
Healthcare Shares

Guess which ASX biotech share is soaring 32% on a ‘landmark’ FDA ruling

What a day it has become for this small-cap healthcare company.

Read more »