ASX healthcare stocks have taken a hit lately, but that could be setting up opportunity.
Two of the ASX's biggest names in the sector are under pressure, with CSL Ltd (ASX: CSL) down 33% over the past six months and ResMed Inc (ASX: RMD) sliding 20% over the same period at the time of writing.
So, are these high-quality names primed for a comeback?
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CSL: Global leader in plasma therapies
CSL has fallen out of favour, but the underlying business still looks incredibly strong.
This is a global leader in plasma therapies and vaccines, supplying critical treatments for chronic and rare diseases. Demand for its products is highly resilient — patients need them regardless of economic conditions.
That gives the $67 billion ASX healthcare stock a defensive edge, backed by recurring revenue and strong global demand.
Recent results have been softer, with margin pressure, restructuring costs, and policy changes weighing on performance. That's played a big role in the share price decline.
But there are signs of recovery. Plasma collections are improving, margins are stabilising, and its vaccine business, Seqirus, continues to diversify earnings. This looks more like a reset than a structural decline.
The main risks? Ongoing margin pressure, currency headwinds, and any delays in earnings recovery.
Still, analysts remain firmly in the corner of the ASX healthcare stock.
Broker sentiment is broadly positive, with most maintaining buy or outperform ratings. The average 12-month price target sits around $214.00 — implying 54% upside.
ResMed: Market leader in sleep apnea
ResMed has also been caught in the recent healthcare and tech sell-off, but its long-term story remains compelling.
This ASX healthcare stock is a global leader in sleep apnea devices and digital health solutions. Its products improve patient outcomes and are increasingly integrated with cloud-based platforms — creating a sticky, recurring revenue model.
A major growth driver is rising awareness and diagnosis of sleep disorders, alongside expansion in digital health and remote monitoring.
So why the sell-off? Concerns around competition, particularly from weight-loss drugs potentially reducing sleep apnea cases, have weighed on sentiment. Like CSL, it has also been hit by broader market rotation away from growth stocks.
That said, the business continues to deliver solid performance and innovation.
The risks include competitive pressures, regulatory changes, and any slowdown in patient growth.
But analysts remain largely upbeat on the ASX healthcare stock.
The average price target sits at $307.95, suggesting upside of around 37%. The most bullish forecasts go even further, tipping the stock could reach $371.80, implying gains of up to 66%.
Foolish Takeaway
CSL and ResMed have both been sold off, but their core businesses remain strong.
If sentiment shifts and earnings momentum improves, these ASX healthcare stocks could be well positioned to lead the next market surge.
