When it comes to long-term wealth building on the ASX, ResMed Inc. (ASX: RMD) shares stand out as a genuine market success story.
This healthcare leader has quietly delivered extraordinary returns for patient investors, and its future growth prospects remain very positive.
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A decade of market-beating returns
Over the past 10 years, ResMed shares have delivered an average total return of 19.9% per annum. Stretch that to 15 years, and the figure is still an impressive 18.4% per annum. Few ASX shares can match that consistency.
These returns have been powered by ResMed's market leadership in sleep apnoea therapy, its expanding digital health ecosystem, and its ability to consistently grow earnings faster than revenue.
In fact, its FY 2025 results from last week revealed a 10% increase in revenue and a 22% year-on-year jump in net profit after tax, highlighting the company's significant operating leverage.
A company built for long-term growth
ResMed is more than just a maker of CPAP machines. It has evolved into a global digital health leader with a powerful ecosystem connecting millions of patients to providers.
Its 2030 Strategy aims to help more than 500 million people reach their full health potential by expanding its reach in sleep health and breathing care, while leveraging AI and connected devices to improve patient outcomes.
Why it deserves investor attention
ResMed ticks the boxes for long-term investors. It has global market leadership in a growing healthcare segment, high-quality earnings growth, driven by innovation and scale, and capital-light operations, producing robust cash flow for dividends, buybacks, and future expansion.
One leading broker that believes that ResMed shares could be a top pick right now is Macquarie.
Earlier this week, the broker retained its outperform rating on its shares with an improved price target of $48.60. This implies potential upside of approximately 11% for investors over the next 12 months.
Macquarie notes that ResMed is delivering margin expansion through operational efficiencies, with gross margins now above 61%, and forecasts continued high-single-digit revenue growth through to FY 2029.
Commenting on the company, its analysts said:
Retain Outperform, driven by solid EPS growth over the forecast period and favourable balance sheet position. RMD remains our preferred sector exposure.
Foolish takeaway
For investors seeking exposure to a high-quality healthcare business with a track record of market-beating returns, ResMed deserves a spot on your watchlist — and perhaps even in your portfolio.
It is also a reminder that patient investing in quality businesses can pay off handsomely over time.
