Three of Australia's largest healthcare shares have continued their fall in 2026:
- Pro Medicus Ltd (ASX: PME) shares have dropped 38% year to date
- CSL Ltd (ASX: CSL) shares are down 19%
- ResMed Inc (ASX: RMD) shares have fallen nearly 10%.
At what point do blue-chip stocks become too cheap to ignore?
Let's find out.
Image source: Getty Images
Why are healthcare stocks in a free fall?
It has been a rough stretch for ASX healthcare stocks like ResMed shares in the last year.
The S&P/ASX 200 Health Care Index (ASX:XHJ) is down 28% in that span.
For comparison, the S&P/ASX 200 Index (ASX: XJO) is up nearly 16% in that same period.
There have been several headwinds weighing on sentiment in this period:
- Many healthcare stocks are growth companies. When interest rates rise, the future earnings that growth stocks are valued on get discounted more heavily, reducing their present value
- Tariff pressure have also hurt ASX healthcare stocks
- Many ASX healthcare giants earn significant revenues offshore (particularly in the US), so a stronger US dollar hurts the translation of those earnings back into Australian dollars
It's important to note that these headwinds are not guaranteed to subside in the short term.
But with a long-term lens, the current stock price for healthcare giants could be a value play.
Here's what experts are saying.
Pro Medicus
Pro Medicus is a provider of medical imaging technology globally. The company is recognised as a leading supplier of radiology information systems (RIS), picture archiving and communication systems (PACS), and advanced visualisation solutions for medical practices and hospitals.
It remains down almost 60% from its 52-week highs, closing yesterday at $137.42.
Pro Medicus shares have a strong chance of rebounding based on analysts forecasts via TradingView.
The average price target of 14 analysts sits at $199.03 per share.
That's 61% higher than current levels.
CSL
CSL is Australia's largest healthcare stock.
It is a biotechnology company that develops and delivers biotherapies and vaccines.
Its share price is down 42% over the last year, and now could simply be too cheap to ignore.
At the time of writing, shares in CSL are trading for approximately $139.44.
This is almost 63% below the average fair price estimate from 16 analysts.
ResMed
Finally, ResMed shares are another blue-chip healthcare stock worth buying low.
The company is a global leader in sleep technology.
Its share price is down roughly 10% this year, trading today for approximately $32.70.
The team at Ord Minnett recently placed a $41.40 price target on ResMed shares.
If they reached this price, it would represent a 26% rise.
