Hello everyone, great to have your company on Kalkine TV. I'm Holly and you’re watching
Buzzing Trends. Are you hunting ASX blue chips? Well, if yes then there are
the two options can be looked at. So lets get started with today’s show.
Blue-chip stocks are considered to be the highest quality stocks present in the stock market.
They have robust balance sheets, capable management, and well-established businesses
with consistent cashflows. Blue-chip stocks have historically pipped the benchmark index
in terms of returns. Since these provide good returns with lower risks, investors
include blue-chip stocks in the portfolios. However, one needs to do thorough research
before taking any exposure, as sinusoidal market trends are evident. On this note,
let’s discuss two ASX blue-chip stocks which can be look at by investors.
Lets look at the first blue-chip stock. CSL
operates in the healthcare segment and is engaged into development, research,
manufacturing and marketing of cell culture media, human plasma fractions and pharmaceutical
and diagnostic products. The biotechnology company comprises the CSL Behring and Seqirus businesses.
Looking at its stock performance.
The stock has delivered a negative year-to-date return of over 11%.
In the past five years, the stock rose over 132%. Before the pandemic, CSL shares were known
for their high-growth and defensive qualities. The company’s share price had a healthy track
record of outperforming the benchmark index, which attracted investors. In February 2020,
its shares hit an all-time high of $342.75, before losing more than 20% within a month. However,
the scenario seems to have changed now, a number of brokers have weighed in on its share price.
On valuation grounds, CSL is the third largest company on the ASX with a market
capitalisation of roughly $125.70 billion.
Looking at its recent announcements.
The company seems to grow decently once the challenges due to COVID-19 on plasma collections
ease. The prospects of growth look strong amid robust demand for the company’s
immunoglobulins and vaccines. CSL also recently announced the proposed acquisition of
Vifor Pharma, which is expected to boost its offering in other lucrative markets.
Post Vifor’s acquisition, the company had announced a net profit after tax
guidance in an approximate range between US$2.15 billion to US$2.25 billion.
Next blue-chip stock. ResMed is a health care company, which is a medical device
manufacturing company particularly. It currently has a focus on the growing sleep treatment market.
Looking at its stock performance.
The stock has delivered a negative year-to-date return of over 9%.
In the past five years, the stock rose over 258%.
ResMed has been a very strong performer over the last decade, generating mouth-watering
returns for investors. The good news is that the next decade looks positive. This is thanks
to its world class products, significant market opportunity, and the growing prevalence of sleep
disorders. Its near-term performance is also being boosted by a major product recall from Philips.
Looking at its recent announcements.
According to the company’s management, there are more than
one billion people across the world who are suffering from sleep apnoea.
Still, many more are there be diagnosed. It opens a range of market opportunities for the company
going forward. The company recently led to the development of its new CPAP device, AirSense
11. The device has done good for itself in the recent past and one of the company’s largest
rivals is currently dealing with a significant product recall of 5.2 million CPAP devices.
Well, that’s all for now. We will be back soon with our Buzzing
Trends show to share the latest market insights with you. Till then, Stay tuned with Kalkine TV
for more stock, business and economy related hot trends.