Amid the carnage that the COVID-19 pandemic has wreaked on individual ASX shares, there are pockets of growth that have flourished.
Here are 2 ASX shares that are thriving amid the coronavirus crisis.
Ansell Limited (ASX: ANN)
Despite being sold-off along with the rest of the market, the Ansell share price has bounced back sharply. Ansell is a global leader in developing, manufacturing and distributing health and safety protection solutions. The company operates in the industrial and healthcare sectors, providing gloves and other personal protective equipment.
Earlier this week, Ansell released a market update informing the ASX that the company has experienced very strong demand for its AlpahaTech hand and body protection products. The company has also seen a surge in demand for single-use and surgical gloves. In the update, Ansell also re-affirmed its full-year guidance with an earnings per share range of US$1.12 and US$1.22.
Additionally, Ansell has been on the receiving end of favourable broker coverage. Analysts from Credit Suisse recently lifted the company to an 'outperform' rating and issued a $32 share price target. Analysts cited the increased demand for protective gloves, which account for a large proportion of Ansell's sales. In addition, a record-low oil price will lower the costs of raw, petrochemical materials used by Ansell.
Fisher & Paykel Healthcare Corp Ltd (ASX: FPH)
The Fisher & Paykel share price has been one of the best performers in the past month and is currently trading near all-time highs. Fisher & Paykel is one of the largest manufacturers and distributors of products used in respiratory care which has allowed the company to shrug off market volatility.
The COVID-19 pandemic has seen Fisher & Paykel report a significant increase in global demand for respiratory humidifiers and consumables directly used in treating patients with coronavirus. In turn, the company has increased its manufacturing output in Auckland and Mexico.
As a result, Fisher & Paykel upgraded its full-year profit guidance to between NZ$275 million and NZ$280 million, up from a range of NZ$260 million to NZ$270 million.
Fisher & Paykel has also been designated as an essential service in New Zealand, which will allow the company to continue operation despite the Level 4 alert status.
Should you buy?
In my opinion, global markets could still see high volatility in the near future and sharp moves in share prices could kick people out of their positions. If you are going to buy now, then it should be with a long-term outlook in mind.
A prudent strategy would be to buy a small parcel of shares and then buy more when market volatility subsides. I would keep companies like Ansell and Fisher & Paykel Healthcare at the top of my watchlist as the next potential market leaders.
