I've been keeping a close eye on the ResMed Inc (ASX: RMD) share price for a while now.
There's a lot to like about ResMed.
I'm particularly keen on the fact that the company has a clear vision and solves real problems that impact the health of millions of people.
ResMed produces cloud-connected medical devices that help people with sleep apnea, COPD, and other chronic diseases.
In its latest results released in late January, ResMed stated revenue increased by 10% for the quarter to US$1.3 billion.
That was largely driven by increased demand for its sleep devices and masks portfolio and its Residential Care Software business.
It's estimated that 1 billion people suffer from sleep apnea worldwide.
And it's thought that approximately 80% of cases remain undiagnosed and untreated.
As such, ResMed's addressable market and growth prospects are significant.
And the company is clearly supporting its growth aspirations.
ResMed continues to invest heavily in research and development, with about $160 million pumped into R&D over the course of the six months ending December 31.
It's capital allocation strategy appears to be paying off, with a new product recently launched.
The US Food and Drug Administration approved ResMed's new home sleep apnea test, NightOwl.
The product, which allows obstructive sleep apnea (OSA) testing at a person's home, is now available across the United States.
Despite recent developments, the ResMed share price hasn't escaped the market turbulence of late.
The ResMed share price was trading at around $40 in late January.
Since then, it's dropped by about 12%, with ResMed shares now changing hands for about $35 each.
In a sign of resilience, the ResMed share price is still up 20% over the past year.
Time to buy Resmed shares?
By most accounts, ResMed shares look to be squarely in the buy zone.
According to broker Macquarie, ResMed is sufficiently positioned to withstand the brunt of President Trump's tariff fallout.
The broker notes that Resmed will be cushioned from the tariff blows because a significant portion of the company's manufacturing is conducted in the United States.
Goldman Sachs also sees potential in the ResMed share price at its current valuation.
The broker has a price target of $49 on ResMed shares.
That represents a potential upside of 40%.
As such, ResMed sits high up on my watch list.
