This ASX healthcare share has been one of the standout success stories in the sector for decades.
However, in the past 6 months, ResMed Inc (ASX: RMD) has seen its share price tumble by 17% to $35.71 at the time of writing.
Investors are asking whether now is the right time to buy. A closer look at the ASX healthcare share suggests there are several compelling reasons to be optimistic.
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Global leader, structural tailwinds
The $52 billion ASX healthcare share dominates the global sleep apnoea market, with its CPAP devices and masks deeply embedded in hospitals, clinics, and homes worldwide.
Sleep apnoea remains significantly underdiagnosed, and rising obesity rates, ageing populations, and greater awareness continue to expand the addressable market. That creates a steady flow of new patients, while existing users generate recurring revenue through masks, accessories, and consumables.
This combination gives ResMed resilience, pricing power, and visibility that few ASX healthcare shares can match.
Growing digital ecosystem
ResMed is no longer just a hardware manufacturer. Its connected devices, cloud platforms, and software solutions are increasingly central to the business. Digital health platforms such as patient engagement and care management software add higher-margin, recurring revenue, and deepen customer relationships.
At the same time, ongoing innovation in masks and devices helps protect market share and supports margin expansion. With strong cash flow and a disciplined balance sheet, the ASX healthcare share has the financial firepower to keep investing in growth while returning capital to shareholders.
Outlook and risks to watch
Looking ahead, ResMed is positioned to benefit from both demographic trends and technology-driven healthcare change. Continued innovation, digital adoption, and expanding treatment rates underpin a positive medium-to-long-term outlook.
That said, risks remain. Competition for the San Diego ASX healthcare share could intensify if rivals regain momentum. Pricing or reimbursement changes in key markets could pressure margins. Emerging alternative treatments for sleep apnoea may also reshape the landscape over time. And as a global business, currency movements can influence reported earnings for ASX investors.
What's next for ResMed shares?
Analysts remain broadly constructive on ResMed. The consensus view sees the ASX healthcare stock as a high-quality compounder, capable of delivering steady long-term earnings growth.
Many brokers point to improving supply conditions, resilient demand, and operating leverage as key drivers of future profit growth. While the stock isn't cheap on traditional metrics, supporters argue the premium reflects ResMed's consistency, global scale, and long runway for expansion.
Most analysts see the ASX healthcare share as a strong buy. In a recent broker's note, Morgans said the company's recent share price weakness is "unjustified given sound fundamentals".
The broker has a buy rating and a 12-month price target of $47.73 on ResMed. This implies a potential gain of 33% at current levels and is a bit higher than the average target of $44.50.
