The S&P/ASX 200 Index (ASX: XJO) has slumped again in early morning trade on Thursday, continuing on a run of seven consecutive days of losses.
The latest weakness has been driven, in part, by declines in major ASX healthcare shares. Cochlear Ltd (ASX: COH), CSL Ltd (ASX: CSL), and Resmed CDI (ASX: RMD) shares have all tumbled to multi-year lows this week.
Cochlear shares are 1.21% lower to $88.88 at the time of writing on Thursday morning. The latest share price represents the lowest trading price since November 2015. For the year to date, Cochlear shares are now down 67%, and they're 68% lower for the year.
It's a similar story for CSL shares. The beaten-down biotech stock is down 0.88% today to a 10-year low of $124.76 a piece. For the year to date, CSL shares are now down 27%, and they're 50% lower for the year.
Resmed shares have tumbled another 3.82% in early-morning trade, to a two-year low of $29.19 a piece. The latest update means the medical equipment company's shares are now 19% lower for the year to date, and they're 20% lower than this time 12 months ago.
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Why are these ASX healthcare shares slumping?
ASX healthcare shares are facing significant headwinds right now. These include disappointing earnings results and structural headwinds such as a weaker US dollar, higher US tariffs, and increased labour costs.
Concerns about overinflated share prices also caused concern that some ASX shares were overvalued and due for a sharp correction.
These headwinds have seen investors increasingly turn away from healthcare shares this year and instead reposition themselves towards ASX energy stocks, resources, and defensive assets.
On top of a sector-wide sentiment shift, the three companies have also faced their own business-based headwinds.
Cochlear posted a softer-than-expected half-year result in February, triggering a share sell-off. The shares crashed again last week after the company downgraded its FY26 earnings guidance, citing weaker conditions across developed markets and softer demand.
Meanwhile, CSL has experienced a notable slowdown in earnings growth, loss of investor confidence, and operational challenges. More recently, CSL has faced headwinds such as lower vaccine demand, a surprise restructure, and even a shock CEO exit.
There hasn't been any price-sensitive news out of Resmed to explain the company's share price declines this year. It's likely that the healthcare stock has been swept up in a general sector-wide sell-off.
Is the latest dip a buying opportunity for investors? Or is there more to come? Here's what the analysts think.
What to expect from Cochlear, CSL, and Resmed shares next
It looks like now is a great buying opportunity to get into the ASX 200 shares for cheap.
Analysts are mostly bullish across the board.
TradingView data shows that eight out of 18 analysts have a buy or strong buy rating on Cochlear shares, with an average target price of $130.70 a piece. That time plies a 47% upside at the time of writing.
Analysts are even more positive about the potential outlook for CSL shares. Out of 18 analysts, 12 have a buy or strong buy rating on the stock, and they tip an average 60% upside to $199.11 a piece.
Resmed shares are also expected to fly around 42% to an average target price of $41.67 over the next 12 months. Out of 31 analyst ratings, 22 have a buy or strong buy rating on Resmed shares.
