Insights

Why ResMed (ASX:RMD) shares could be a fantastic buy and hold option

Here’s why ResMed Inc. (ASX:RMD) shares could be a great buy and hold option for Australian investors right now…
The post Why ResMed (ASX:RMD) shares could be a fantastic buy and hold option appeared first on The Motley Fool Australia. –

Ideas and innovation

Due to favourable long term industry tailwinds, many investors are positive on the healthcare industry.

But with so many top shares to choose from in the industry, it can be difficult to decide which ones to buy.

To narrow things down, I have picked out an ASX healthcare share that could be fantastic long term option for investors.

ResMed Inc. (ASX: RMD)

ResMed is a medical device company aiming to change lives by developing, manufacturing and distributing innovative medical devices and cloud-based software solutions that better diagnose, treat, and manage sleep-disordered breathing, chronic obstructive pulmonary disease (COPD), and other key chronic diseases.

Over the last decade, it has developed a portfolio of world class products and become a leader in its field. This has underpinned very strong sales and earnings growth over the period ang generated impressive returns for investors.

The good news is that its strong form has continued in FY 2021. ResMed recently released its second quarter update and revealed a 9% increase in quarterly revenue to US$800 million and a 17% increase in net profit to US$206.4 million.

Looking ahead, ResMed still has a huge and growing market opportunity due to the increased education around sleep disorders and the growing prevalence of sleep apnoea. It also has a massive digital health ecosystem with millions of connected devices generating valuable patient data.

The latter is expected to play a role in helping the company achieve its goal of improving 250 million lives in out-of-hospital healthcare in 2025.

One broker that is particularly positive on the company is Morgans. Last week the broker put an add rating and $30.09 price target on the company’s shares.

It notes that ResMed delivered a result ahead of its expectations. The broker also believes its outlook is positive thanks to new sleep patient diagnoses, strong mask resupply, and the favourable pricing environment.

This compares to the latest ResMed share price of $26.69.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of June 30th

More reading

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended ResMed Inc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Why ResMed (ASX:RMD) shares could be a fantastic buy and hold option appeared first on The Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!