S&P/ASX 200 Index (ASX: XJO) healthcare stock ResMed Inc (ASX: RMD) has been shooting the lights out this past year.
Twelve months ago, you could have bought shares in the sleep disorder treatment company for $24.75 apiece. On Tuesday, the ResMed share price closed the day at $38.19.
That sees the ASX 200 healthcare stock up an impressive 54.3% in a year. And if we add in the 21.4 cents in unfranked dividends eligible shareholders will have received over the 12 months, then the accumulated value of ResMed shares is up 55.17%.
But after such a strong run higher, is it too late to buy ResMed stock?
Not according to Catapult Wealth's Dylan Evans (courtesy of The Bull).
ASX 200 healthcare stock facing large untapped market
"ResMed posted a top first quarter result in fiscal year 2025," said Evans, who has a buy recommendation on ResMed.
"Income from operations was up 34% on the prior corresponding period, which was well above previous guidance. Revenue was up 11%," he added.
As for the "huge opportunity" that remains for the ASX 200 healthcare stock, Evans said:
ResMed provides sleep apnoea solutions in a market with strong growth potential. Awareness and diagnosis of sleep apnoea continues to grow, but only a small percentage of potential patients are receiving treatment.
Consequently, this represents a huge opportunity for ResMed.
Now, some investors have been concerned that drugs like Ozempic could take a bite out of ResMed's future revenues. But Evans isn't particularly concerned.
"Fears that new weight loss and diabetes drugs would impact the business continue to ease, and, in our view, pose limited risk," he said.
What else did ResMed report for Q1 FY 2025?
ResMed released its Q1 FY 2025 results on 25 October. And with the ASX 200 healthcare stock exceeding guidance on many fronts, investors responded by sending the share price up 5.9% on the day.
The 11% increase in revenue Evans referred to came out to US$1.23 billion for the three months.
And ResMed achieved a huge boost in its gross margin, up 4.2% to 58.6%. Management attributed the increased margin to manufacturing efficiencies, component cost improvements, and an increase in average selling prices.
Commenting on the strong results that have seen the ASX 200 healthcare share outperforming, ResMed CEO Mick Farrell said:
Our first-quarter fiscal year 2025 results reflect ongoing momentum and strong execution across all areas of our business.
We delivered 11% year-over-year revenue growth, and our focus on operational excellence resulted in another quarter of year-over-year margin expansion and a 34% increase in operating profit.
