Are CSL and ResMed shares buys at 52-week lows?

These ASX healthcare shares may not regain investor confidence overnight, but I think they are worth studying while sentiment is weak.

CSL Ltd (ASX: CSL) and ResMed Inc (ASX: RMD) shares have both fallen to new 52-week lows on Tuesday.

When a share is making new lows, sentiment is often weak, investors are nervous, and the market is focused on what could still go wrong. That is not usually a comfortable time to buy.

But I think both healthcare leaders remain top buy and hold picks for patient investors.

The key is having the right time horizon. Buying at lows does not mean the share price will rebound quickly. But it does mean investors may be getting a better starting point in high-quality businesses that the market has stopped trusting for now.

a woman looks exhausted and overwhelmed as she slumps forward into her hand while looking at her laptop screen.

Image source: Getty Images

CSL shares

CSL has had a difficult period. The market's confidence has been damaged by downgrades, margin pressure, weaker visibility, and concerns about parts of the plasma business. This is no longer the simple ASX healthcare compounder story that investors became used to over many years.

I think that is important to acknowledge. 

A recovery could take time. Investors may need to see better execution, clearer earnings momentum, and more confidence around margins before sentiment turns in a meaningful way.

But I do not think CSL's long-term investment case has disappeared.

The company still has global leadership positions across plasma therapies, vaccines, and specialist medicines. Its products are tied to real healthcare needs, not short-term consumer trends. Demand for immunoglobulins and other critical therapies should remain supported over time, even if the business is working through operational and commercial challenges today.

This is why I think buying near 52-week lows could be attractive. The market is no longer pricing CSL as though everything is easy. Expectations have been reset, and that can create a better setup for investors willing to wait.

ResMed shares

ResMed has also been sold down heavily, but I think the business remains very strong.

The company is a global leader in sleep health, with a business model that combines devices, masks, accessories, software, and connected care.

I like that mix because the need is ongoing. Patients do not simply buy a device and disappear. Treatment often involves replacement masks, support, data, monitoring, and long-term therapy management.

The sleep apnoea market also remains underpenetrated. Many people are still undiagnosed, and awareness of the condition can keep improving over time.

There has been plenty of debate about risks, including drug competition and newer treatment approaches. But I still think ResMed has a powerful position in a large global market.

GLP-1 weight loss drugs, in particular, may not be the negative that investors first feared. They may not be for everyone and could also encourage more people to engage with their health, seek diagnosis, and understand the impact of sleep apnoea.

That does not mean the share price will recover overnight. But for long-term investors, I think the current weakness could be a chance to buy a world-class healthcare business at a more attractive price.

Foolish takeaway

Buying shares at 52-week lows can feel uncomfortable because the market is usually telling a negative story.

But that can be where the opportunity begins.

I do not think CSL or ResMed will suddenly regain investor confidence overnight. Both need patience, and both could remain volatile while the market waits for clearer evidence.

Even so, I think these are the kinds of businesses worth studying when sentiment is poor. They have strong market positions, global healthcare exposure, and long-term demand drivers that should still matter years from now.

Motley Fool contributor Grace Alvino has positions in CSL. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended CSL and ResMed. The Motley Fool Australia has positions in and has recommended ResMed. The Motley Fool Australia has recommended CSL. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on 52-Week Lows

A man in a sweatshirt holds two different phones to compare telco services.
52-Week Lows

Can this ASX 200 telco stock rebound from a 52-week low?

Find out if the shares are a buy, sell, or hold now.

Read more »

A couple sits on a sofa, each clutching their heads in horror and disbelief, while looking at a laptop screen.
52-Week Lows

This ASX share looks like a bargain buy after hitting a 52-week low: Here's why

Find out what is pushing this depressed ASX share lower, and why I think it could rebound.

Read more »

A man in a business suit rides a graphic image of an arrow that is rebounding on a graph.
52-Week Lows

2 great value ASX shares near 52-week lows I'd buy today

These stocks now look undervalued to me.

Read more »

a uranium-fuelled mushroom shaped cloud explosion surrounded by a circle of rainbow light with a symbol of an atom to one side of it.
52-Week Lows

I think this ASX share is a bargain buy after hitting a 52-week low: Here's why

Brokers tip a rebound ahead. But by how much?

Read more »

Retiree using a laptop outside his house.
52-Week Lows

Should you buy Lynas and this ASX share at their 52-week lows?

One offers growth potential and the other income, but are either worth buying today?

Read more »

Stressed businessman sits in panic amid digital stock market financial background.
52-Week Lows

NextDC, Generation Development, Fortescue shares hit 52-week low. Can they rebound?

Here’s what the experts think.

Read more »

Man and woman sitting at table with the man looking a bit puzzled at his laptop.
52-Week Lows

3 ASX shares trading at 52-week lows that could be outstanding value plays 

These stocks could be too cheap to ignore.

Read more »

A distressed young woman reads bad news on her smartphone while standing in a modern indoor setting.
52-Week Lows

Down 40%: Why I'd buy this ASX 200 share before sentiment improves

I look at why the latest AI developments have not changed my positive view of this ASX share.

Read more »