After the closing bell, the S&P/ASX 200 Index (ASX: XJO) is 0.95% lower to 7,046.9 points. This would make it the worst session in close to six weeks. Meanwhile, the CSL Limited (ASX: CSL) share price gracefully moved into the green.
Lingering concerns over whether or not inflation has been tamed has sustained market volatility. For now, investors are in a state of limbo, awaiting the next consumer price index data on 26 October. At the same time, the earnings season has delivered a confusing mix of surprises to the upside and downside.
However, the CSL share price has performed rather stoically given the backdrop.
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Healthy dose of stability
While we have witnessed recent reprieves across market indices, company outlooks remain hazy. At a macro level: the Ukraine-Russia conflict is ongoing, the energy shortage remains a concern, inflation stickiness is yet to be determined, and short-term company earnings growth is questionable.
There are many moving pieces in the world at the moment and many investors are taking caution. Yet, with Aussie inflation above 6%, some still can't bare the thought of shifting back into cash. As a result, defensive ASX blue chips could be showing up as a happy medium.
The CSL share price is down 0.1% since the start of the year, but absolute performance may not be its attraction. Instead, the $142 billion healthcare company could be garnering appeal with its lack of volatility.
Notably, CSL has been less volatile than 75% of ASX-listed shares in the last three months. During this time, the company's shares have on average moved less than 3% a week. That kind of predictability is what many investors may find comforting at the moment.
Is the CSL share price compelling?
In the absence of a standout performance this year, a common question might be: are CSL shares still worth buying now? Well, that's a challenging question to answer, but here are a couple of perspectives.
Firstly, Ben Clark of TMS Capital recently had plenty of good things to say about the plasma therapies company. In an interview with Livewire, Clark said:
I want to buy businesses where I don't have to worry if there's going to be a recession in the next year or two. I know that the [CSL] earnings are, almost certainly, going to be significantlly higher in a few years than they are today.
Secondly, Macquarie has recently retained its outperform rating on the CSL share price. Analysts of the investment bank now have a $329.50 price target on the company's shares, supported by improving trading conditions.
