What could $1,000 invested in CSL shares be worth in a year?

Would it be worth buying this biotech giant right now?

| More on:
Scientist looking at a laptop thinking about the share price performance.

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

CSL Limited (ASX: CSL) shares have been a great place to invest over the last decade.

During this time, the biotherapeutics giant's shares have delivered an average total return of 16.04% per annum.

This means that if you had invested $1,000 into CSL's shares in 2013, you would have seen your investment grow to be worth almost $4,500 today.

This has been driven by the company's strong profit growth over the last 10 years thanks to its world-class portfolio of therapies and vaccines, its significant investment in research and development, and a series of successful acquisitions.

But those returns have been and gone. What about if you were a new investor putting $1,000 into its shares today? What might that be worth in a year?

Investing $1,000 into CSL shares

The good news for investors is that despite the company's heroics over the last decade, its shares are currently under the pump and down significantly from recent highs. It is for this reason that a number of analysts believe that now is the time to snap up CSL shares.

However, we have a slight problem here. The CSL share price is currently fetching $266.82, which means we're going to have to find an extra $67.28 so we can purchase 4 whole shares for a total of $1,067.28.

But it will be more than worth it if the team at Citi is on the money with its recommendation. It has a buy rating and a $325 price target on the company's shares.

If CSL's shares were to rise to Citi's price target, our 4 shares would have a market value of $1,300. That's $232.72 greater than our original investment.

Keep holding

If we decided to hold onto our shares for another nine years, then compounding could work its magic and grow our investment even further.

For example, by earning a return of 9.6% per annum (the average 30-year return for ASX shares) from 2024 to 2033, our $1,300 would grow to almost $3,000. Not bad if you ask me.

And let's not forget that CSL has a history of outperforming the market, so the returns could be even better. Though, that is of course not a guarantee as past performance doesn't always repeat itself.

Citigroup is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor James Mickleboro has positions in CSL. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended CSL. 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

Scientist with headache, stress and fatigue with woman, overworked with overtime for science breakthrough. Medical research, scientific innovation and senior female, burnout and migraine in lab.
Healthcare Shares

Why is the Mesoblast share price in a trading halt?

Is Mesoblast raising funds again? Let's find out.

Read more »

A woman reclines in a comfortable chair while she donates blood holding a pumping toy in one hand and giving the thumbs up in the other as she is attached to a medical machine to collect her blood donation.
Healthcare Shares

The CSL share price return tripled the ASX 200 in November

November saw a very healthy return for CSL shares.

Read more »

A male doctor wearing a white doctor's coat shrugs and holds his hands up to indicate the unimpressive CSL share price as a result of OOVID-19
Share Market News

Here's why you might have just bought Healius shares

Two of the most popular super funds just loaded up on this healthcare stock.

Read more »

Doctor doing a telemedicine using laptop at a medical clinic
Healthcare Shares

Here's why this ASX 200 healthcare stock is roaring 13% higher on Wednesday

This healthcare company is outperforming every other stock within the ASX 200 today.

Read more »

A young woman sits at her desk in deep contemplation with her hand to her chin while seriously considering information she is reading on her laptop

Could CSL stock be a millionaire-maker at $261

Does the exceptional biotech company still harness the power to make an investment today worth a million in the future?

Read more »

Two happy scientists analysing test results in a lab
Healthcare Shares

Why are Mesoblast shares charging 5% higher today?

This beaten down biotech is having a strong session. But why?

Read more »

Cropped shot of an attractive young female scientist working on her computer in the laboratory.
Healthcare Shares

Healius share price rallies amid corporate reset

An outgoing chair and a revitalised balance sheet. Healius is undergoing a makeover.

Read more »

Cropped shot of an attractive young female scientist working on her computer in the laboratory.
Healthcare Shares

Imugene share price jumps 32% on FDA news

Here's why this biotech is having a strong start to the session.

Read more »