A severe sector-wide downturn has put ASX healthcare 200 shares under significant pressure this year driven by macroeconomic pressures, a weaker US dollar, rising inflation, higher cost-of-living, and regulatory uncertainty.
The S&P/ASX 200 Health Care Index (ASX: XHJ) is the worst performing sector by far in 2026 and has significantly unperformed the broader index. The decrease has pushed many major ASX healthcare companies to multi-year lows.
At the time of writing, the ASX 200 Health Care Index is down around 34% for the year to date and 47% lower than 12 months ago.
For context, the wider S&P/ASX 200 Index (ASX: XJO) is largely flat for the year to date and 3% higher than this time last year.
Sector wide declines might look concerning, but I think it presents a great opportunity for investors to buy into ASX 200 healthcare shares for cheap.
Here are three stocks that I'd buy today, while they're on sale.
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ResMed Inc (ASX: RMD)
ResMed shares have fallen to a two-year low this week and are down 28% for the year so far. The global leader in sleep health was swept up in the general sector-wide ASX healthcare sell-off. Its latest third-quarter earnings update also came in softer than expected, which didn't help lessen declining sentiment. But I think the ASX 200 healthcare share is now oversold and below fair value. Sleep disorders require long-term management, and as a global leader, ResMed has a powerful position in a large (and growing) market. According to Market Index data, brokers have a strong buy consensus on ResMed shares and tip a 67% upside to an average $43.38 target price, at the time of writing.
Fisher & Paykel Healthcare Corporation Ltd (ASX: FPH)
Fisher & Paykel shares have rebounded around 14% since hitting a two-year low in mid-May, but the shares have still got some more room to run before they return to 2025-levels. At the time of writing, the shares are still down around 6% for the year to date and they're 11% lower than 12 months ago. Investors have been buying this medical device company's shares following the release of its strong FY26 result last month, which showed investors that the business is sound. The ASX 200 healthcare company reported a 14% increase in total operating revenue and a 24% increase in NPAT. Brokers rate the shares as a strong buy and tip a potential 21% upside to an average $36.90 target price, at the time of writing.
Pro Medicus Ltd (ASX: PME)
Pro Medicus shares have rebounded around 21% since the health imaging technology company announced a new contract win. In late May, the ASX 200 healthcare company confirmed it has signed a five-year, A$28 million contract renewal with Allegheny Health Network (AHN). The increase has helped recoup some, but not all losses shed by the company over the past year. Pro Medics shares are still around 28% lower for the year to date and 43% below their trading price this time last year. The company's US subsidiary also won two $40 million five-year contract renewals back in early March. It looks like we'll see plenty more out of the company over the next 12 months, too. The majority of brokers rate the ASX 200 healthcare shares as a strong buy and tip an 18% upside to an average $188.51 target price, at the time of writing.
