The ResMed Inc.(ASX: RMD) share price is breaking new records.
At the time of writing, shares in the healthcare company are trading for $35.28 – up 0.54%. At one point, shares reached an intraday and all-time high of $35.44.
The S&P/ASX 200 Index (ASX: XJO) is also having a record day. Presently, the benchmark index is 0.05% higher but reached a high of 7,417.6 points. While the influence of the general market on the ResMed share price could be having an effect, there may be more to the story.
Let’s take a closer look.
Healthcare shares are looking fit
Throughout July, ASX healthcare shares, like ResMed, have been surging. Just in the last month, the ResMed share price has jumped 8.1%, Sonic Healthcare Limited (ASX: SHL) improved 8.2% and CSL Limited (ASX: CSL) shares are up 1.5%.
With COVID back in the spotlight, as the delta variant causes a sharp increase in cases across the world, healthcare shares – including ResMed – may be the few to benefit from this strain of the virus.
Experts too have had nothing but positive words to say about the ResMed share price in recent days.
Analysts at Macquarie Group, for example, say ResMed is a growth share for investors to buy right now. Randal Jenneke, head of Australian equities at T Rowe Price Group, says ResMed is a “quality” share for investors.
Jenneke previously said
Over more than two decades of data for the Australian market, high quality had outperformed low quality by 6.7% per annum.
… [quality shares like ResMed are] poised to outperform over the coming year.
As the ResMed share price has just hit a 52-week high, this advice is being borne out – at least for the time being.
Another factor potentially helping ResMed shares – the falling Aussie dollar.
Experts are tipping it to fall below 70 cents against the greenback. For ASX listed companies that predominately do business in the US, this could be a windfall.
ResMed is one of those companies that predominantly trade in the US. In fact, it is a dual listed company with shares on the New York Stock Exchange.
ResMed share price snapshot
Over the past 12 months, the ResMed share price has increased 23.1%. Year-to-date it is up an even greater 28.3%.
ResMed has a market capitalisation of around $51 billion.