Some share price falls make me nervous. Others make me interested.
That is how I am looking at two of the ASX's biggest healthcare names right now. CSL Ltd (ASX: CSL) and Cochlear Ltd (ASX: COH) are both down more than 50% since this time last year, a remarkable decline for two companies that have historically been viewed as high-quality blue chips.
There are good reasons for the weakness. Both businesses have disappointed the market, and investors are clearly questioning how quickly earnings can recover.
Even so, I think patient investors could look back on this period as a rare buying opportunity.
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CSL shares
CSL has gone from being one of the market's most dependable compounders to one of its biggest disappointments.
The share price has been hit by concerns around earnings growth, margin pressure, and whether the company can return to the kind of performance investors became used to over many years.
I understand the frustration. When a business has traded at a premium for a long time, even a modest downgrade in confidence can lead to a large fall in the share price. In CSL's case, the reset has been much more than modest.
But I do not think the long-term investment case has disappeared.
CSL remains a global leader in plasma therapies, vaccines, and specialty medicines. These are not short-term fashion categories. They are healthcare markets supported by real patient need, scientific expertise, and scale.
The plasma business, in particular, still has attractive long-term characteristics in my opinion. Demand for immunoglobulins and other plasma-derived therapies continues to grow globally, and CSL has spent years building the collection, manufacturing, and distribution infrastructure needed to compete at scale.
That kind of position is not easy to replicate.
The issue is timing. Investors may need to wait for margins, earnings confidence, and sentiment to improve. But after such a large share price decline, I think the market is now offering a much more reasonable entry point than it did before.
For long-term investors, I would see CSL shares as a strong buy candidate in May.
Cochlear shares
Cochlear has also had a brutal fall. Its latest trading update disappointed the market, with softer demand, weaker earnings expectations, and evidence that the recovery will take time.
That is painful, especially for a company that has often been priced for steady growth.
But I think there is an important distinction to make here. A bad year does not necessarily mean a broken business.
Cochlear remains one of the world's leading companies in implantable hearing solutions. It operates in a market with deep clinical need, strong brand recognition, and long-term demographic support.
Hearing loss is not going away. In fact, ageing populations and better awareness of treatment options should support demand over time.
What has changed is the near-term earnings path. Consensus estimates suggest earnings per share will step backwards in FY26 before gradually recovering in FY27 and FY28. That means investors should not expect an instant rebound.
But at a much lower share price, I think Cochlear is starting to look more interesting.
The market has already punished the stock heavily for the downgrade. If management can stabilise performance and rebuild confidence, the upside could be meaningful over the next several years.
For me, Cochlear shares are a buy for investors who can tolerate volatility and think beyond the next result.
Foolish Takeaway
So, are CSL and Cochlear strong buys in May?
I think they could be.
These are not risk-free opportunities. Both companies need to rebuild trust with investors, and earnings may take time to recover.
But I would rather be considering these healthcare blue chips after a 50%-plus fall than when they were trading at much higher valuations.
