- One of the ‘defensive’ sectors on ASX, healthcare, bounds to get investors' attention in times of market volatility.
- In last one month the healthcare index has gained more than 4%.
- Few noteworthy bigshots from the healthcare sector feature RMD, COH, PME and FPH.
The healthcare sector is often considered a defensive one. Healthcare industry is responsible for flourishing services that are always in need. Looking back, during Covid-19 induced pandemic, when most businesses were incurring huge losses, healthcare sector witnessed a boom. Even today when the world is fearful of recession due to monetary tightening, healthcare sector boasts of being safe.
On the ASX, it is noteworthy that while the ASX200 index has lost over 6% in a month, ASX200 health Care index (INDEXASX:XHJ) has gained over 4%. Yesterday (6 July 2022), the index closed 1.97% higher. Though today, the sector appears trading slightly lower.
In this backdrop, let us see the latest performances of ResMed Inc (ASX:RMD), Cochlear Limited (ASX:COH), Pro Medicus Limited (ASX:PME) and Fisher and Paykel Healthcare Corporation Ltd (ASX:FPH) from the healthcare sector. Notably, all the above stocks have a market capitalisation of more than AU$1 billion.
ResMed Inc (ASX:RMD)
US based medical equipment company ResMed Inc shares are trading a tad lower today at AU$32.195 apiece. In last thirty days, RMD share price has moved up over 8%. The company is known for its large market share across the globe. The company has recently acquired German out-of-hospital software solutions bigshot - Medifox Dan. With the acquisition ResMed now claims to be global leader in out-of-hospital software solutions. It has reportedly also accelerated ResMed’s SaaS strategy, expanding its solutions portfolio. The acquisition is expected to be EPS accretive by the company.
Cochlear Limited (ASX:COH)
Hearing solutions company Cochlear Limited is also trading 0.541% lower in noon today. In last one-month Cochlear shares have lost over 5%. Though the company has not provided good returns in near term, in last five years, COH share price has appreciated by more than 34%. The medical equipment company has not made any major announcements in last one month. Any price movements in COH shares thus seem to be influenced by the sectoral trend and the broader market momentum.
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Pro Medicus Limited (ASX:PME)
Radiology software solutions company Pro Medicus Limited’s share price also appears to be moving along the sectoral trend. PME share price is down about 1.86% today, while in last one month PME shares have gained over 6%. Notably, over last five years PME share price has zoomed up more than 760%. Meanwhile, in June, major share price movements were influenced by two contract renewals for AU$47 million. Another event that created momentum in PME shares was a seven- year contract signed by it with Allina Health.
Fisher and Paykel Healthcare Corporation Ltd (ASX:FPH)
One more noteworthy company from healthcare sector is Fisher and Paykel Healthcare Corporation. FPH shares are defying sectoral gravity and trading 0.365% higher in afternoon today. In last thirty days, FPH share price has moved up over 5%. Yesterday company’s director Geraldine McBride had announced her intentions to retire in August. However, FPH share price seems to be unaffected by the announcement. It is yet another company catering to those facing respiratory troubles and sleep Apnoea in over 120 countries globally.
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