HLS, SHL, IDX: ASX healthcare stocks standing firm amid crashing market

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HLS, SHL, IDX: ASX healthcare stocks standing firm amid crashing market

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Highlights

  • The S&P/ASX 200 closed on Tuesday with a downfall of 0.98%, reaching its new 50-day low
  • Fears about rising interest rates and lockdowns in China are causing the stock market to tumble
  • Healius and Sonic have provided promising results in the face of the pandemic.

The Australian stock market benchmark, S&P/ASX 200, closed in the red on Tuesday, having dropped 69.50 points or 0.98%. It reached its new 50-day low, plummeting to 7051.20. The bloodbath in the market has been caused by the fears over rising interest rates and lockdowns in China.

Aligning with the benchmark, ten out of 11 sectors ended lower on Tuesday, with Telecommunication Services being the exception as it gained 0.35%.

This article will discuss three ASX healthcare stocks that have provided modest dividend yields in the crashing market and have maintained a Price to Earnings Ratio (P/E) less than the sector benchmark. These stocks belong to healthcare service providers that have stood firm amidst the crashing market.  

Source: Refinitv

Healius Limited (ASX: HLS)

Healius is one of Australia’s largest healthcare companies. It provides quality, accessible, and cost-efficient healthcare services through its extensive network of pathology laboratories, diagnostic imaging centres, day hospitals and IVF clinics.

In the half-year ended 31 Dec 2021, the company’s pathology business segment provided excellent financial results owing to COVID-19 testing during the Delta and Omicron outbreaks.

Good results of pathology segment in 1H22

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Do read: PME, MDR, CSL: A look at three ASX healthcare growth stocks

Sonic Healthcare Limited (ASX: SHL)

Sonic Healthcare is one of the global players in medical diagnostics. Spanning its services across Australia, Europe, and North America, Sonic has an excellent reputation in laboratory medicine/pathology, radiology, and primary care medical services.

In H1 FY2022, Sonic presented record financial performance driven by pandemic testing and growth in the base business.

The company’s revenue, EBITDA, net profit, and earnings per share surged by 7%, 18%, 22%, and 21%, respectively, compared to the prior corresponding period (pcp).

Related read: From VIP to VRT: Top five dividend-paying stocks from ASX healthcare

Integral Diagnostics Limited (ASX: IDX)

Integral Diagnostics is a leading provider of medical imaging services across 67 radiology clinics throughout Australia and New Zealand. Striving to create a healthier world, IDX has employed Australia’s leading radiology and diagnostic imaging experts to ensure quality care, service, and access to its patients.

Despite challenges thrown by COVID-19 in 1H22, the company delivered 5% organic revenue growth in Australia. Similarly, the company paid a dividend of 12.5 cents per share.

Bottom line

ASX health stocks – Healius, Sonic and IDX – have provided promising results in times of crisis. This implies that healthcare services are imperative and cannot be stalled due to circumstances.

Also read: IPD, MX1 & MDR: Three ASX health tech stocks with strong revenue in 3Q

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