2 ASX stocks I like better than CSL for long-term growth

CSL is not the first growth stock I'd choose to buy.

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Key points

  • CSL Ltd's growth prospects have recently declined due to pressure on pharmaceutical pricing in the US and questions surrounding its vaccine growth potential.
  • Breville's shares have dropped over 20%, presenting a potential investment opportunity bolstered by strong revenue and NPAT growth despite facing US tariff challenges.
  • The GARP ETF offers access to globally diversified businesses with strong growth metrics and reasonable valuations, making it a compelling alternative to CSL shares.

CSL Ltd (ASX: CSL) shares have delivered strong long-term returns since listing more than two decades ago. But, the ASX stock's growth outlook has deteriorated recently, in my mind.

Healthcare changes under the current US administration have clouded the outlook based on pressure on pharmaceutical businesses to lower prices. There's also a question mark about the company's vaccine growth potential for the foreseeable future.

It's also true to say that CSL's market capitalisation of more than $100 billion makes it harder for the business to double in size compared to when it was $50 billion or $20 billion.

CSL may still have a successful future, but I'm turning my attention towards other investments, such as the following two.

Breville Group Ltd (ASX: BRG)

The business sells products through a number of brands including Breville, Sage, Baratza and LELIT. It's best known for coffee machines, though it also sells other appliances as well as roasted coffee beans through Beanz.

The Breville share price has fallen by more than 20% since 21 August 2025, as the chart below shows. It looks considerably cheaper and I think this could be the right time to invest.

FY25 was a solid result, with revenue growth of 10.9% to $1.7 billion and net profit after tax (NPAT) growth of 14.6% to $135.9 million, which funded a 12.1% increase in the annual dividend per share to 37 cents.

The company is facing disruption in the current financial year due to US tariffs. While it only affects one country, it is the biggest market.

The ASX growth stock is working on diversifying its manufacturing base away from China to countries with lower tariff rates such as Mexico and Southeast Asia.

I think the business will be able to grow profit in the longer-term, particularly if the tariff situation becomes less of a headwind.

The ASX stock could grow in markets like Asia, which gives the company more scope for global growth than CSL seems to have with its focus on the US.

Global X S&P World EX Australia GARP ETF (ASX: GARP)

This is an exchange-traded fund (ETF) that owns some of the most appealing businesses in the world.

The idea of the fund is to access global companies with strong earnings growth, solid financial strength and trading at reasonable valuations. This strategy is essentially the growth at a reasonable price (GARP) model, which can help deliver strong returns.

Its portfolio has 250 holdings in its portfolio across multiple countries and sectors, suggesting strong diversification.

The GARP ETF looks for businesses with strong 3-year sales per share growth and earnings per share (EPS) growth, at appealing valuations, with low debt levels and a high return on equity (ROE).

Global X says companies in the investable universe are first ranked based on growth metrics, with the top 500 stocks eligible for inclusion. From there, the top 250 stocks are selected based on their quality and value scores to determine the final index constituents.

I'm calling this an ASX stock because we can buy it on the ASX and it's about stocks.

There are a few other investments I'd also choose over CSL shares, but the above two are among the first that spring to mind.

Motley Fool contributor Tristan Harrison 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. The Motley Fool Australia has recommended CSL. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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