- Blue-chip stocks are stocks of established and recognised companies and are generally preferred by conservative investors.
- These stocks are good for capital preservation and consistent dividend payment and prevent portfolios against inflation.
- CSL and SHL are two blue-chip stocks from the healthcare space.
Blue-chip stocks are stocks of established and recognised companies and are regarded as comparatively safer investments. In addition, these players have a track record of success and stable growth.
It is generally seen that conservative investors usually prefer these stocks. These investors have a low-risk appetite or are usually close to their retirement. Blue-chip stocks are good for capital preservation and consistent dividend payment. These stocks also prevent portfolios against inflation.
Presently, healthcare players are gaining market attention following the rise in omicron cases in different parts of the world.
Today, in this feature, we will explore healthcare stocks for blue-chip investors.
CSL Limited (ASX:CSL)
CSL Limited is developing, manufacturing, and marketing pharma and diagnostic products, cell culture media and human plasma fractions.
On 30 November 2021, the Company announced that it is collaborating with StartX as an Innovation Partner over a two-year program. StartX is the industry and stage-agnostic community of founders based in Silicon Valley.
Through this partnership, the Company, which cure patients with rare & serious diseases and safeguards human health by means of influenza vaccines in over 100 nations, will take support entrepreneurs in the StartX community as they commercialise innovative technologies and develop novel therapeutics.
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Other than this, the Company, along with Walter and Eliza Hall Institute (WEHI), and the University of Melbourne, secured funding to create a start-up incubator to aid and develop initial-stage Australian biotech companies.
- Why are CSL shares grabbing limelight today?
- How did ASX shares Domino's Pizza, CSL Limited and Pro Medicus fare in FY21?
In 2021, CSL stocks have improved slightly by 4.4%. On 3 December 2021, the Company settled at AU$297.670, down 2.500% from the previous close. It has a market cap of AU$139.11 billion.
Sonic Healthcare Limited (ASX:SHL)
Sonic Healthcare is one of the leading providers of medical diagnostics in the world. It has a reputation for excellence in lab medicine/pathology, radiology and primary care medical services across operations in Australasia, Europe & North America.
On 30 November 2021, the Company announced that it has signed a deal to form a joint venture with Harrison.ai to co-develop as well as commercialise efficient and precise clinical Artificial Intelligence solutions in pathology. Also, SHO has taken a significant strategic shareholding in Harrison.ai.
On 18 November 2021, the Company provided a trading update for four months ended 31 October 2021. During the period, the Company’s staff played a critical role in combating the pandemic. It conducted lab testing for tens of thousands of people for COVID-19 daily. It also performed COVID-19 serology testing and, in specific markets, COVID-19 whole genome sequencing to help detect variants. In Australia, the Company has provided more than 1 million COVID-19 shots to the public all through special-purpose high volume hubs and via its network of over 200 medical centres.
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Revenue during this period increased by 5% to AU$3,087 million and 16% to AU$991 million.
In 2021, SHL stocks delivered a return of ~30%. On 03 December 2021, the Company settled at AU$42.620 , down 1.229% from the previous close. It has a market cap of AU$20.69 billion.