After the closing bell, the S&P/ASX 200 Index (ASX: XJO) is 0.95% lower to 7,046.9 points. This would make it the worst session in close to six weeks. Meanwhile, the CSL Limited (ASX: CSL) share price gracefully moved into the green.
Lingering concerns over whether or not inflation has been tamed has sustained market volatility. For now, investors are in a state of limbo, awaiting the next consumer price index data on 26 October. At the same time, the earnings season has delivered a confusing mix of surprises to the upside and downside.
However, the CSL share price has performed rather stoically given the backdrop.
Healthy dose of stability
While we have witnessed recent reprieves across market indices, company outlooks remain hazy. At a macro level: the Ukraine-Russia conflict is ongoing, the energy shortage remains a concern, inflation stickiness is yet to be determined, and short-term company earnings growth is questionable.
There are many moving pieces in the world at the moment and many investors are taking caution. Yet, with Aussie inflation above 6%, some still can't bare the thought of shifting back into cash. As a result, defensive ASX blue chips could be showing up as a happy medium.
The CSL share price is down 0.1% since the start of the year, but absolute performance may not be its attraction. Instead, the $142 billion healthcare company could be garnering appeal with its lack of volatility.
Notably, CSL has been less volatile than 75% of ASX-listed shares in the last three months. During this time, the company's shares have on average moved less than 3% a week. That kind of predictability is what many investors may find comforting at the moment.
Is the CSL share price compelling?
In the absence of a standout performance this year, a common question might be: are CSL shares still worth buying now? Well, that's a challenging question to answer, but here are a couple of perspectives.
Firstly, Ben Clark of TMS Capital recently had plenty of good things to say about the plasma therapies company. In an interview with Livewire, Clark said:
I want to buy businesses where I don't have to worry if there's going to be a recession in the next year or two. I know that the [CSL] earnings are, almost certainly, going to be significantlly higher in a few years than they are today.
Secondly, Macquarie has recently retained its outperform rating on the CSL share price. Analysts of the investment bank now have a $329.50 price target on the company's shares, supported by improving trading conditions.
