With ASX reporting season approaching soon, Australian investors may be looking for ASX healthcare stocks to add to their portfolio.
Yesterday, the S&P/ASX 200 Index (ASX: XJO) reached a new all-time high of 8,641 points.
The ASX 200's strong performance has pushed its price-to-earnings (P/E) ratio to around 20, which is significantly above its long-term average of 15, according to CommSec.
In this market, ASX investors may be struggling to find attractively valued opportunities. In anticipation of a market decline, they also may favour defensive sectors. This includes healthcare, which typically holds up better than the average ASX stock during a correction.
Attractively valued ASX healthcare stocks may be especially appealing to investors right now.
In a 17 July report, Australian Healthcare, broker Macquarie named its 4 most preferred ASX healthcare stocks ahead of the August 2025 reporting season.
What are they?
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CSL Ltd (ASX: CSL)
It may come as no surprise that CSL was included in the broker's top 4 picks.
While the recent market rally has propelled many ASX 200 stocks back toward their all-time highs, CSL remains materially behind. CSL is down 19% over the past year and 12% over the past five years. Slower earnings per share (EPS) growth and rising debt due to the Vifor acquisition have been key drivers of underperformance.
However, Macquarie is betting that the biotech giant can turn things around. It has an outperform rating and a price target of $347.50 on the stock.
Supporting this recommendation, the broker cited:
Base business recovery, Behring margins improvement on track, contributions from new products, operational efficiencies, valuation appeal following share price rebasing.
Macquarie also noted that CSL is currently trading at a 28% discount to its 10-year average price-to-earnings ratio.
When CSL reports, Macquarie will be paying close attention to management commentary on the potential tariff implications and its R&D strategy.
Resmed CDI (ASX: RMD)
Resmed was also named among Macquarie's top ASX healthcare picks.
Unlike CSL, Resmed shares have a solid five-year track record. They are up 29% over the past year and 41% over five years.
Macquarie is betting Resmed can charge even higher over the next 12 months. It has placed an outperform rating and price target of $45.90 on the stock.
Supporting this recommendation, the broker cited:
Strong product cycle, increased awareness from GLP-1s supported by investment in diagnostics, solid operating leverage.
When Resmed reports, Macquarie will be looking for management commentary on RoW regulatory approval of AirSense11, sleep lab backlogs, and progress on new products (NightOwl, NPAP Tx).
Integral Diagnostics Ltd (ASX: IDX)
Integral Diagnostics was the third ASX healthcare stock named.
Unlike CSL and Resmed, Integral Diagnostics is a small capitalisation stock with a market capitalisation of less than $1 billion. Accordingly, it may have flown under the radar for many ASX investors.
Integral Diagnostics has risen 7% for the year to date; however, it is down 28% over five years.
Macquarie is forecasting that the company has a bright future, placing an outperform rating and a price target of $3.20 on the stock.
The broker cited "solid industry fundamentals" and "CAJ merger upside" in support of this recommendation.
Neuren Pharmaceuticals Ltd (ASX: NEU)
Neuren Pharmaceuticals was the final ASX healthcare stock named by the broker.
Macquarie initiated coverage of Neuren Pharmaceuticals on 18 June, and described it as a 'standout in the ASX biotech sector'.
Although its share price has disappointed investors over the past year, falling 33%, long-term investors are unlikely to complain. Those who bought Neuren Pharmaceuticals shares five years ago are now up an impressive 1,126% on their investment.
The good news for new and existing investors is that Macquarie believes the ASX healthcare stock has further to run.
The broker has placed an outperform rating on the stock and a price target of $18.60.
Macquarie cited its attractive valuation "with upside from ROW expansion and significant pipeline" in support of this recommendation.
