UPDATE: Four key healthcare stocks have been highlighted by Wilsons Advisory as prime investment opportunities, signaling a crucial moment for investors on the ASX. This comes as the health sector has faced significant underperformance over the last five years.
According to the latest report from Wilsons Advisory, the healthcare sector is now poised for a potential turnaround. With factors like an ageing population, increasing chronic disease rates, and ongoing advancements in medical technology, these stocks are expected to benefit from strong earnings growth. Wilsons states that the current market conditions present a unique opportunity for investors to capitalize on compelling valuations and above-market growth prospects.
ResMed Inc. (ASX: RMD) tops the list, identified as Wilsons’ “highest conviction” pick. The company, renowned for its sleep apnoea devices, is projected to experience an impressive compound annual growth rate of 8% over the next three years. With recent gross margin guidance updated to between 61% and 63%, ResMed remains an attractive investment at current prices.
Next is Telix Pharmaceuticals Ltd (ASX: TLX), which has seen fluctuations this year due to a series of setbacks. However, Wilsons reports an “encouraging” third-quarter update, with revenue expectations for FY25 now set between US$800 million and US$820 million. The positive trajectory hints at a promising turnaround for Telix, especially following the approval of its Gozellix compound.
CSL Ltd (ASX: CSL) has faced challenges, disappointing investors with recent earnings downgrades. Despite this, Wilsons highlights that the stock’s current valuation presents an attractive entry point for potential buyers, particularly in light of the ongoing efforts to recover gross margins.
Lastly, Cochlear Ltd (ASX: COH) is noted for its upcoming product rollout, expected to enhance market share and drive earnings growth. While historically seen as an expensive stock, Cochlear is now trading at a significant discount to its five-year average multiple, making it an appealing option for investors willing to look past short-term volatility.
With the healthcare sector showing signs of recovery, Wilsons Advisory urges investors to consider these stocks as strong contenders for their portfolios. The team emphasizes the importance of acting quickly, as market conditions may shift rapidly.
As the ASX health sector evolves, investors are encouraged to stay alert for further developments. The potential for earnings growth and market revaluation makes these stocks worth monitoring closely in the coming weeks.
Follow the latest updates to ensure you don’t miss out on key investment opportunities in the healthcare sector.
