Investors looking at ASX healthcare shares have an entire sea of top-quality selections to choose from.
Two names, Pro Medicus Limited (ASX: PME) and ResMed Inc. (ASX: RMD) are also rated highly by brokers at the time of writing.
Do they deserve a spot in your portfolio today? Let's see what the experts think.
ASX healthcare shares catch a bid
Pro Medicus is a healthcare technology company that provides imaging software to radiology providers. Its flagship Visage 7 platform is used globally by hospitals and imaging networks.
Zooming out, the stock has been one of the standouts in the past five years.
Since March 6 2020, Pro Medicus shares have exploded 1,291% from $18.81 to the current $261.59 per share.
The company reported revenue growth of 31% in its H1 FY25 results, printing $97 million at the top line, and pulling this to 42% growth in net profit.
It also secured a $330 million, 10-year deal with Trinity Health in the US.
Broker opinions vary on the stock, but Bell Potter sees value in the ASX healthcare share.
As my colleague James reported, the broker rates Pro Medicus a buy with a price target of $330.
It says the company "continues to wipe the floor with competitors" with its recent updates.
ResMed: Ready to rally?
ResMed specialises in obstructive sleep apnoea (OSA) which is a large global market with an estimated 1 billion people affected globally.
The ASX healthcare share is off to a shaky start to the year, down more than 3% since January, after a strong run in 2024.
But brokers aren't deterred by the price action. The consensus of analyst estimates rates ResMed a buy, according to CommSec data.
Goldman Sachs reaffirmed its buy rating in a February note, citing demand for the company's OSA treatments.
It says ResMed is the world's "leading CPAP manufacturer of devices and masks in the treatment of OSA".
The company has expanded to providing software services to out of hospital healthcare providers including Durable Equipment Manufacturers (DMEs), nursing homes and home health and hospice agencies.
Our Buy recommendation on RMD is premised on (1) Ongoing robust new patient growth for CPAP therapy despite the market entry of GLP-1 drugs to treat OSA, (2) Further RMD market share gains, building on its #1 global market position, (3) Expansion of the OSA market in regions outside of the US. We believe the stock's current trading multiple is unjustified based on its growth outlook.
ASX healthcare shares takeaway
These ASX healthcare shares are rated as buys from top brokers, but both have different operating models. Pro Medicus is a high-margin, software-driven business focused on radiology imaging. Whereas ResMed books recurring revenue from medical devices.
Time will tell whether these two companies will trend higher or not. In the last year, ResMed is up 31%, whereas Pro Medicus has jumped 163%.
