Due to favourable long term industry tailwinds, many investors are positive on the healthcare industry.
But with so many top shares to choose from in the industry, it can be difficult to decide which ones to buy.
To narrow things down, I have picked out an ASX healthcare share that could be fantastic long term option for investors.
ResMed Inc. (ASX: RMD)
ResMed is a medical device company aiming to change lives by developing, manufacturing and distributing innovative medical devices and cloud-based software solutions that better diagnose, treat, and manage sleep-disordered breathing, chronic obstructive pulmonary disease (COPD), and other key chronic diseases.
Over the last decade, it has developed a portfolio of world class products and become a leader in its field. This has underpinned very strong sales and earnings growth over the period ang generated impressive returns for investors.
The good news is that its strong form has continued in FY 2021. ResMed recently released its second quarter update and revealed a 9% increase in quarterly revenue to US$800 million and a 17% increase in net profit to US$206.4 million.
Looking ahead, ResMed still has a huge and growing market opportunity due to the increased education around sleep disorders and the growing prevalence of sleep apnoea. It also has a massive digital health ecosystem with millions of connected devices generating valuable patient data.
The latter is expected to play a role in helping the company achieve its goal of improving 250 million lives in out-of-hospital healthcare in 2025.
One broker that is particularly positive on the company is Morgans. Last week the broker put an add rating and $30.09 price target on the company's shares.
It notes that ResMed delivered a result ahead of its expectations. The broker also believes its outlook is positive thanks to new sleep patient diagnoses, strong mask resupply, and the favourable pricing environment.
This compares to the latest ResMed share price of $26.69.
