The S&P/ASX 200 Index (ASX: XJO) is on the rise again this week, up 0.24% at the close of the index on Tuesday. As we edge further into the reporting season, some ASX shares are rocketing off the back of strong results while other stocks are sliding.
Here are three ASX shares I have my eye on this week.
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CSL Ltd (ASX: CSL)
The ASX biotech share was one of the most-traded stocks on the index last week. The company's shares crashed nearly 17% last week after a soft half-year result and a shock CEO exit saw investors sell-up in panic. The latest downturn is just one of many headwinds the company has faced over the past 6 months. Since August last year its share price has dropped 44.31%.
But I think the current share price gives investors the opportunity to buy the stock for cheap. The company still has great growth potential and a strong core business. Demand for its biotherapies and vaccines are likely to continue growing globally and its plasma business is still one of the largest plasma collection networks in the world.
CSL is entering a key investment phase which could help boost its financials. I'd expect that if and when the company's financials pick back up, investor confidence and also the share price could follow suit.
West African Resources Ltd (ASX: WAF)
The ASX gold stock has soared over 100% over the past year off the back of strong gold prices and some promising exportation results. I'm impressed with the company's 10-year production plan and current cash and billion reserves.
The gold price is tipped to beat record-levels again this year as demand for safe-haven assets keeps climbing. And if this happens then robust gold miners like West African Resources could continue outperforming over the next 12 months.
Pro Medicus Ltd (ASX: PME)
Pro Medicus posted record revenue and surging profits in its half year results last week, but it didn't stop investors fleeing the health imaging ASX company's shares, sending the share price crashing.
The share price drop is surprising given the company's strong financials and the fact that its visage imaging platform is becoming widely adopted across large hospital networks in the US.
The company is gaining traction with long-term contracts, it has a strong earnings visibility, a growing pipeline of major contract wins, all against a backdrop of radiologist shortages.
I think the current share price is a once-in-a lifetime opportunity to buy the shares at a two-year low, ahead of the next uptick.
