Resilience in Focus: CSL and ResMed Stand Out Amid Tariff Concerns

April 15, 2025 02:13 PM AEST | By Team Kalkine Media

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Resilience in Focus: CSL and ResMed Stand Out Amid Tariff Concerns — Image source: Shutterstock

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Highlights

CSL and ResMed seen as strong performers under tariff pressures

Healthcare stocks show strength during past market downturns

Fundamental growth supports CSL and ResMed’s long-term positioning

As global markets prepare for the potential impact of new U.S. tariffs, some healthcare companies are showing signs of resilience. CSL (ASX:CSL) and ResMed (ASX:RMD) have emerged as standouts, backed by strong fundamentals and historical performance during times of economic stress.

Estimates suggest the tariff impact on these companies would be relatively contained. For CSL (CSL), an approximate 1 per cent price adjustment could offset the expected cost pressures, while ResMed (RMD) may need to adjust prices by just 2 to 3 per cent. This compares favourably to other healthcare peers such as Ansell (ASX:ANN), which may face a more significant adjustment of around 6 to 7 per cent.

Looking back to the global financial crisis, the healthcare sector demonstrated notable resilience. Between December 2007 and June 2009, healthcare stocks such as CSL (CSL), Ramsay Health Care (ASX:RHC), and Fisher & Paykel Healthcare (ASX:FPH) were among the best performers on the ASX. This historical context strengthens the case for certain healthcare companies as stable options during uncertain times.

Beyond their historical track record, CSL (CSL) and ResMed (RMD) continue to show solid underlying business strength. Both companies are expected to deliver consistent earnings per share (EPS) growth, coupled with lower risk to those earnings. Valuation metrics also appear attractive compared to other sector peers, providing an added layer of confidence for investors evaluating healthcare opportunities.

On the market, shares of ResMed (RMD) edged higher by 0.9 per cent in afternoon trading, while CSL (CSL) advanced 2 per cent. These moves reflect the broader sentiment that certain healthcare companies are better equipped to navigate policy shifts and macroeconomic challenges.

As market participants weigh the implications of global trade dynamics, the healthcare sector continues to demonstrate characteristics of durability and earnings stability. CSL (CSL) and ResMed (RMD), in particular, are drawing attention for their combination of defensive qualities and growth potential.

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