ASX healthcare share ResMed Inc (ASX: RMD) edged 2% higher on Tuesday to $29.57, offering a modest lift after recent weakness. The stock remains down around 10% over the past month and about 18% year to date.
Some investors might question whether the pullback is an opportunity in disguise. Here are three more reasons why this high-quality ASX healthcare share might be worth a closer look.
Image source: Getty Images
Powerful, long-term growth
ResMed develops devices and software to treat sleep apnoea and other breathing disorders, including masks, CPAP machines, and digital health platforms used in both clinical and home settings. This positions the ASX healthcare share within several powerful long-term trends, including ageing populations, growing awareness of sleep health, and the shift toward home-based care rather than hospital treatment.
Importantly, ResMed is not dependent on a single product line. It operates across devices, consumables, software, and data platforms, creating a broader ecosystem that connects patients, clinicians, and healthcare providers. This integrated model helps improve customer retention and supports recurring revenue streams over time.
Growth momentum, improving earnings
Recent results suggest the business continues to deliver solid momentum. Revenue rose 11% to US$1.4 billion in the latest quarter, while earnings per share increased 21% to US$2.86. That combination of growth and expanding profitability highlights the strength of its operating model even in a more uncertain macro environment.
Morgans Financial was encouraged by the update, noting continued double-digit growth and margin expansion. The broker has retained its buy rating on the ASX healthcare share, although it trimmed its price target slightly to $41.72. This points to a 41% upside from current price levels.
Massive global opportunity
Another key attraction is the size of the opportunity ahead. Sleep apnoea remains significantly underdiagnosed and undertreated globally. ResMed estimates there are more than 1 billion people with the condition. Yet fewer than 20% of patients in the US are diagnosed or treated, and fewer than 10% in the rest of the world.
That level of underpenetration creates a long runway for growth without the need for new markets or disruptive product shifts. Instead, ResMed can continue expanding diagnosis rates, increasing awareness, and helping more patients access treatment.
The ASX healthcare share is also building a strong digital advantage. Its ecosystem now includes more than 36 million patients on its AirView platform, and more than 34 million cloud-connectable devices globally. This data network strengthens its ability to improve clinical outcomes and enhance product development over time.
On the innovation front, ResMed continues to invest in new products and adjacent opportunities. Recent initiatives include the rollout of AirSense 11 into additional markets, new mask designs such as AirTouch N30i and F30i, and expansion into related sleep health areas.
Foolish Takeaway
Overall, ResMed remains a high-quality healthcare business with durable growth drivers, a large underpenetrated market, and a strengthening digital ecosystem.
While the price of the ASX healthcare share has softened recently, the long-term investment case remains firmly intact for patient investors.
