Should you buy this top ASX share in the dip?

I'm keeping a close eye on the ResMed Inc (ASX: RMD) share price.

There is a lot to like about ResMed, and with the share price shedding 5% in morning trade on Wednesday, this could be a good time to snap up shares.

ResMed helps people deal with sleep disorders and respiratory problems with its cloud-connected medical devices.

Its out-of-hospital software platforms and devices are used by millions of people around the world.  

The company's success and steady growth is reflected in the ResMed share price, up from less that $10 ten years ago to its current value of around $35.40.

In the last year alone, the ResMed share price is up 25%

And it's showing little sign of bucking its upward trend.

In its latest results released in late January, ResMed stated revenue increased by 10% to US$1.3 billion, driven by increased demand for its sleep devices and masks portfolio and its Residential Care Software business.

With more than 1 billion people estimated to be suffering from sleep apnea worldwide, ResMed's addressable market and growth prospects remain significant.

ResMed has set an ambitious target of helping 500 million people alleviate their sleep and respiratory issues by 2030.

And investors seem pleased with the news coming out of ResMed.

Citigroup recently upgraded ResMed shares to a buy with a price target of $44 per share, representing a potential upside of about 24% over the next 12 months.

Goldman Sachs is even more bullish on the ResMed share price, placing a $49 price target on the company's shares.

Should I buy ResMed shares?

ResMed enjoys a market-leading position, and the company does not intend to rest on its laurels.

The company has pledged to continue on its path of innovation, stating it will invest 6% to 7% of its revenues into research and development to drive long-term success.

I also like its exposure to the wearable devices megatrend, with ResMed set to benefit from its collaborations with tech giants Apple and Samsung.

As the company has previously stated, it is well aware of its opportunity to capitalise as other tech companies follow Samsung and Apple and implement capabilities for detecting sleeping disorders such as sleep apnea.

With heightened awareness of their sleeping disorders, consumers are likely to seek solutions and, in doing so, look to ResMed, the market leader in the space.

These are just a few reasons why I think ResMed looks like a buy.

The post Should you buy this top ASX share in the dip? appeared first on The Motley Fool Australia.

Motley Fool contributor Steve Holland has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Apple and ResMed. The Motley Fool Australia has positions in and has recommended ResMed. The Motley Fool Australia has recommended Apple. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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