CSL Ltd (ASX: CSL) shares are shaking off the broader selling action today and marching higher.
Shares in the S&P/ASX 200 Index (ASX: XJO) biotech stock closed yesterday trading for $264.31. At the time of writing on Wednesday afternoon, shares are changing hands for $269.41 apiece, up 1.9%.
For some context, the ASX 200 is down 0.5% at this same time.
With today's intraday gains factored in, CSL stock is now up more than 15% since the recent closing lows on 27 June.
Over the past full year, however, CSL has underperformed the benchmark index, sinking 8.5% compared to the 12.9% one-year gain posted by the ASX 200.
Though that performance doesn't include the (rounded) $4.25 in unfranked dividends CSL paid eligible stockholders over the full year.
At the current price, CSL shares trade on an unfranked trailing dividend yield of 1.6%.
Which brings us back to our headline question.
CSL shares: Buy, hold, or sell?
CSL operates three distinct business divisions.
The company's Seqirus segment is one of the world's largest influenza vaccine businesses. CSL's Behring segment focuses on treating rare and serious diseases, and its Vifor segment, acquired in 2022, provides renal disease treatment.
Shaw and Partners' Jed Richards recently offered his outlook on the stock (courtesy of The Bull).
"CSL is a global leader in biotechnology and blood plasma therapies," said Richards, who has a hold recommendation on CSL shares.
"While its price/earnings ratio is elevated, institutional investors are increasingly rotating into healthcare, viewing it as a defensive growth sector," he said.
According to Richards:
CSL's pipeline of innovation and global footprint support long term earnings growth. Recent acquisitions and research and development investments enhance its competitive edge.
Though not cheap, CSL's quality and resilience justify a hold rating, particularly for investor portfolios seeking exposure to healthcare and life sciences.
Catapult Wealth's Blake Halligan also came out with a hold recommendation for CSL shares in The Bull this week.
"A staple in many portfolios, CSL has been a global leader in the plasma therapies market for many years," Halligan said.
Commenting on the pressure the ASX 200 biotech stock came under in the wake of US President Donald Trump's threatened pharmaceuticals tariffs, Halligan added:
The potential impact of US tariffs on CSL is still uncertain and likely too pessimistic. Investors initially over-estimated the impact of weight loss drugs on listed company ResMed and they could be over-estimating the potential impact to CSL from possible US tariffs.
Connecting the dots on CSL shares, Halligan concluded:
This company has been recovering from its share price decline in the past 12 months, so we suggest investors continue holding one of the highest quality businesses on the ASX. The company has a solid track record of generating double-digit growth.
