ASX healthcare and consumer stocks show growth potential

Australian equity markets are seeing notable activity in the healthcare and consumer goods sectors. Healthcare stocks have experienced a surge in interest from institutional investors, with Morgan Stanley reporting an increase in overweight positions. CSL has emerged as a top held active position, followed by ResMed. Analysts from RBC Capital Markets have also expressed optimism regarding the sector, citing better-than-expected profit reporting and expectations for positive earnings growth across various healthcare companies.

In the consumer goods sector, Breville Group Ltd is highlighted for its global coffee machine business and growth in emerging markets such as China, South Korea, Mexico, and the Middle East. The company has successfully diversified its manufacturing to mitigate tariff risks, with 85% of its 120-volt product sourcing now located outside of China. Breville reported a gross profit margin of 36.8% for the second half of FY26 and increased its dividend per share by 2.7% to 38 cents.