There are plenty of high-quality ASX healthcare stocks with CSL Limited (ASX: CSL) and Cochlear Limited (ASX: COH) prominent among them.
One stock that I am particularly bullish on is RESMED/IDR UNRESTR (ASX: RMD) also known as just ResMed.
There are plenty of reasons to like this San Diego-based company, but here are my five:
Leader of a large untapped market
With more than 4 million cloud connected devices and software solutions that help the company monitor their patients remotely, treat and manage sleep apnoea, ResMed is a clear leader in this niche market.
Industry estimates are that 12 million Americans suffer from sleep apnoea and less than 4 million of them are diagnosed or treated for it each year. There is plenty of long term growth opportunities in America alone, never mind internationally.
Leadership
ResMed was founded by its current Chairman Peter Farrell and his son Mick Farrell, who has been a ResMed employee for over 15 years, and is the current CEO. Together they have led the company and seen its share price increase by over 3 times in the last six years.
Their wealth, reputation and legacy is all tied into the business which aligns their interest in growing the business with shareholder interests.
Technology and innovation
ResMed has been innovative and at the forefront of embracing new technology trends. One such trend is cloud computing and the acquisition of Brightree, a medical software-as-a-service (SAAS) company, has allowed ResMed to provide more services to doctors managing post-acute illnesses.
Foolish takeaway
With a PE ratio of 30, ResMed shares don't come cheap and there is a risk that many people who suffer from sleep apnoea might choose not to get treatment. However, there is plenty to like about ResMed and it's a company I'd be happy to own and hold for the long term as part of a well diversified portfolio.
In addition to ResMed, here are 3 revolutionary companies that I'd love to own.
