The S&P/ASX 200 Index (ASX: XJO) is hovering around 8,700 points, which is not far below its record high of approximately 9,200 points.
That can make buying feel a little harder. When the market is already trading at elevated levels, I think investors need to be more selective. I would rather focus on high-quality businesses with long-term growth runways than chase whatever has already been running hot.
One ASX blue chip stock I would still consider buying in this environment is ResMed Inc. (ASX: RMD).
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A global healthcare leader
I think ResMed is one of the strongest healthcare businesses on the ASX.
The company develops products to treat sleep apnoea and breathing disorders, as well as software solutions for home healthcare. This gives it exposure to several powerful long-term trends, including ageing populations, rising awareness of sleep health, and the shift toward care being delivered outside hospitals.
What I like most is that ResMed is not relying on one narrow product line.
It has devices, masks and accessories, software, data, and connected health platforms. That creates a broader ecosystem around patients, clinicians, and healthcare providers.
Its latest third-quarter update showed the business still has momentum. Revenue increased 11% to US$1.4 billion, while earnings per share rose 21% to US$2.86. ResMed also reported a 290-basis-point lift in its gross margin.
I would not buy the stock purely because of one quarterly result, but I think that update supports the view that the business remains in good shape.
A huge addressable market
For me, the bigger reason to like ResMed is the size of the opportunity.
Sleep apnoea remains massively underdiagnosed and undertreated globally. ResMed's presentation points to more than 1 billion people with sleep apnoea, with fewer than 20% of patients diagnosed or treated in the US and fewer than 10% in the rest of the world.
That is the kind of runway I like in a blue chip.
ResMed does not need to invent a completely new market to keep growing. It can continue expanding access, improving diagnosis, and helping more patients move onto treatment.
The company also has a growing digital advantage. Its ecosystem includes more than 26 billion nights of respiratory medical data, more than 36 million patients in AirView, and more than 34 million cloud-connectable devices worldwide.
I think that data and connectivity could become increasingly valuable as healthcare becomes more digital, personalised, and outcome-focused.
Innovation remains important
Another reason I would consider this ASX blue chip stock is that it continues to invest in new products.
The company highlighted its AirSense 11 rollout into more global markets and newer mask launches such as AirTouch N30i and AirTouch F30i. It is also expanding into adjacent sleep health areas, including its planned acquisition of Noctrix, which has a device for refractory moderate-to-severe restless leg syndrome.
That tells me ResMed is still thinking about the broader sleep health market, rather than standing still with its existing portfolio.
Foolish takeaway
With the ASX 200 around 8,700 points, I would be careful about what I buy.
But ResMed is one ASX blue chip stock I think still deserves attention.
It has a global market position, a large underpenetrated opportunity, strong recent earnings momentum, and a growing digital health ecosystem.
For investors looking beyond short-term market levels, I think those qualities make it a blue chip worth considering.
