Two ASX healthcare stocks seen as potential long‑term outperformers after steep declines
Two of Australia’s healthcare heavyweights, CSL Ltd and ResMed, are being flagged by market watchers as potential long‑term outperformers after sharp share price declines, with demographic trends and persistent demand expected to underpin growth over a five to ten year period.
CSL has endured a difficult stretch that has weighed on its stock. Even so, the company’s CSL Behring division remains a global leader in plasma therapies, supplying treatments for chronic and rare diseases that require ongoing care — a foundation for recurring revenue as patient numbers rise.
A pipeline of new products, together with its vaccine and specialty pharmaceuticals divisions, is cited as support for future expansion. Recent weakness in CSL’s shares has pushed valuation multiples back toward levels that appear inexpensive relative to the company’s own history.
Combined with its long‑term growth profile, that backdrop is seen as improving the risk‑reward balance. Over a five to ten year timeframe, the view is that CSL could rebuild momentum as execution improves and its growth drivers play out, making it a potential buy‑and‑hold candidate.
ResMed operates in a market that continues to expand globally. Sleep apnoea remains significantly underdiagnosed, with management estimating more than 1 billion sufferers worldwide. As awareness grows through education and technology, demand for the company’s devices and software has been increasing and is expected to continue rising over the next decade.
What distinguishes ResMed, according to this thesis, is an ecosystem approach that pairs hardware with cloud‑based software and data insights. That integrated model supports patients and healthcare providers across the full treatment journey and is seen as strengthening the company’s competitive position.
With the share price well below previous highs, proponents argue the long‑term setup looks more compelling given structural demand and a strong market position. Looking ahead, both companies are viewed as beneficiaries of enduring healthcare trends and ongoing innovation.
While recent declines have been disappointing for shareholders, they are seen as creating entry points for long‑term investors. Over five to ten years, the argument is that CSL and ResMed have the quality and positioning to deliver strong returns and potentially outperform the broader market.