ResMed Inc. (ASX: RMD) is one of the ASX healthcare shares I would be happy to buy in July.
The company has been a long-term success story, but I think the next decade could still offer plenty of opportunity for patient investors.
That is why I believe ResMed shares are worth a close look today.
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A huge healthcare problem
The main reason I like ResMed is the size of the problem it helps solve.
Sleep and breathing disorders affect a very large number of people worldwide. Many of those people may not be diagnosed, treated, or properly supported over time.
That gives ResMed a long runway.
The company is best known for its sleep apnoea devices, masks, accessories, and related digital health tools. But I think the bigger picture is more important than any single product. ResMed is helping shift more care into the home, using connected devices, software, data, and ongoing support to make treatment easier for patients and providers.
That can be a powerful combination. Healthcare systems are under pressure, and keeping people healthier at home can be better for patients and more efficient for the system. ResMed's technology sits directly inside that trend.
More than a device maker
I also think ResMed is more than a traditional medical device company.
Its products are increasingly connected to software and digital health platforms. That can help patients stay on therapy, give providers better information, and make care more personalised.
In its most recent quarterly update, ResMed said it remains focused on expanding access to care globally and scaling its digital health capabilities. I think that is where the long-term opportunity sits.
The company also highlighted its artificial intelligence (AI)-powered digital health solutions, cloud-connected devices, and intelligent software. That matters because healthcare is becoming more data-driven, and I think companies that can combine hardware, software, and patient engagement could have an advantage.
ResMed is already operating across 140 countries, which gives it a global base to build from. It also continues to invest in capacity, including a new distribution centre in the United States to help serve patients and providers across North America.
The share price looks attractive
The other reason I think ResMed shares are a strong buy is valuation.
They are trading around $28.88. That is well below the 52-week high of $45.25 and close to the 52-week low of $25.50.
I do not think that share price reflects the quality of the business or the size of the long-term opportunity.
According to CommSec, consensus estimates suggest ResMed could generate earnings per share of approximately $1.57 in FY26, $1.69 in FY27, and $1.84 in FY28.
Based on the current share price, ResMed trades at a price-to-earnings ratio of around 18.5 times FY26 earnings, 17.1 times FY27 earnings, and 15.7 times FY28 earnings.
That looks cheap to me for a global healthcare business with strong market positions and a long runway for growth.
Foolish takeaway
I think ResMed shares are a strong buy in July.
The company is exposed to a significant global healthcare need, plays a valuable role in sleep and breathing treatment, and is building additional digital capabilities around its devices and patient support.
There are always risks. Healthcare markets can be competitive, regulation can change, and investor sentiment can shift quickly. But I think the current share price gives patient investors a good chance to buy a high-quality ASX healthcare share at a reasonable valuation.
