ASX healthcare shares didn't, as a whole, have the best of years in 2020.
In fact, Randal Jenneke – head of Australian equities at the US investment firm T Rowe Price – says healthcare just suffered through its worst year in a decade.
But he believes that's all turning around.
And in the hunt for what Jenneke labels "quality growth" stocks, ASX healthcare shares are under the microscope.
Leading ASX healthcare share "really attractive"
According to Jenneke (quoted by the Australian Financial Review):
That's where we see good opportunity. ResMed is an example of a stock that we think is really attractive. Valuations are back to the most attractive level in five years. As the US economy reopens, the sleep business can get back to normal and there's a new product cycle coming.
If you're not familiar with the company, ResMed CDI (ASX: RMD) is a leading S&P/ASX 200 Index (ASX: XJO) healthcare share.
Its primary business is developing respiratory medical devices, with a focus on the treatment of sleep apnoea. During the height of the COVID epidemic, ResMed also turned its attention to the production of respirators.
Based in the US state of California, the ASX healthcare share operates in more than 140 countries. It has manufacturing facilities in Australia, Singapore, France, and the US.
ResMed first listed on the ASX in November 1999, trading for less than $1 per share. Today it has a market cap of $41 billion.
ResMed share price snapshot
Over the past 12 months the ResMed share price has gained 19%, trailing the 22% gains posted by the ASX 200 over that same time.
Year-to-date the ASX health care share has gained 3.2% and is currently trading at $28.47 per share.
ResMed also pays a smallish dividend yield of 0.5%, unfranked.
