The COVID-19 pandemic has put a spotlight on the ASX healthcare sector. With increased demand for health services and products, shares in the sector could be in the buy zone.
So with that in mind, here are 2 ASX shares you should watch in the healthcare sector.
Fisher & Paykel Healthcare Corp Ltd (ASX: FPH)
The Fisher & Paykel share price has bucked the bear market and is currently trading near all-time highs. Fisher & Paykel is one of the largest manufacturers and distributors of products and systems used in respiratory care. Given the detrimental effects COVID-19 has on the respiratory system, there has been a global spike in demand for respiratory humidifiers and ventilation treatments.
Just yesterday, Fisher & Paykel provided the market with a trading update for FY20. In the announcement, the company upgraded its full-year profit projections to between $NZ275 and $NZ280 million, up from a range of NZ$260 million to NZ$270 million.
In order to meet the surge in demand, Fisher & Paykel has increased production in Auckland and Mexico. Additionally, the company has increased shipments to the 120 countries that it supplies.
CSL Limited (ASX: CSL)
Not only is CSL one of Australia's highest quality business, but the company is also one of the largest global manufacturers in flu vaccines. According to the company's management, CSL is relatively insulated to the effects of the COVID-19 pandemic and does not expect a slowdown in demand for its immunoglobulin and albumin products.
Recently, the federal government placed the biggest order ever for flu vaccines in a bid to curb the convergence between the flu and COVID-19. CSL's vaccine business Seqirus is Australia's only onshore vaccine manufacturer and has been working with the government to meet demand.
CSL is also in the process of working with the University of Queensland, by providing expertise in a research effort to find a vaccine for COVID-19. The company has donated its adjuvant technology to the cause that will help a vaccine create a better immune response and speed production.
Foolish takeaway
Despite the doom and gloom, financial markets always provide investors with opportunities. This can be seen in the Fisher & Paykel share price which has surged more than 30% since the start of the year. In addition, CSL recently became the most valuable company on the ASX.
If you missed out on these moves, you should not feel as though you have missed the boat. Instead, a good strategy would be to do further research on similar companies that could benefit or have been oversold and wait for positive price action to confirm.
