Morgans just added this ASX 100 blue-chip stock to its "conviction buy" list

The market weakness won't last and Morgans thinks this is a great opportunity to load up on quality stocks starting with those on its S&P/ASX 100 (Index:^ATOI) (ASX: XTO) conviction list.

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The ResMed (Resmed Inc (ASX:RMD)) share price is waning this morning as the sleep disorder treatment device maker tries to regain favour with the market.

ResMed's share price fell 0.9% to $14.68 in late morning trade as the S&P/ASX 200 (Index:^AXJO) (ASX: XJO) index eased 0.2%.

Its shares are down nearly 9% since October as growth stocks on high price-earnings (P/E) multiples have lost favour with investors amid rising US government bond yields and worries that these market darlings have run ahead of fundamentals.

The company has managed to recover from some of its steeper losses since it posted a credible first quarter result on October 26 but questions remain if the stock can retest its record high of $16.04 that it hit at the start of last month.

Morgans thinks it can and has just added ResMed to its "high conviction" stock list and has offered three reasons for investors to buy the stock.

"The company remains well positioned, in our view, with continued growth across masks and devices, a solid pipeline of new products and an expanding digital platform helping to drive resupply, low setup costs and improve adherence rates," said the broker.

"1Q results were above expectations, driven by the fifth straight quarter of double-digit sales growth, an expanding product range, stable GMs and strength in the company's leading connected-care offerings."

Thirdly, there's still plenty of growth left ahead for ResMed. Morgans noted that 12 million Americans suffer from sleep apnoea (based on statistics from the US National Heart Blood and Lung Institute) but ResMed said less than four million are diagnosed or treated each year – and that's only for the US.

Morgans has a $16.40 price target on the stock.

But ResMed isn't the only S&P/ASX 100 (Index:^ATOI) (ASX: XTO) stock on Morgans' conviction list. Copper miner OZ Minerals Limited (ASX: OZL), plumbing products group Reliance Worldwide Corporation Ltd (ASX: RWC) and our second largest mortgage lender Westpac Banking Corp (ASX: WBC) are also on the list.

Coincidentally, OZ Minerals share price is surging 2.3% at the time of writing to $9.47 thanks to stronger copper prices overnight and bullish market sentiment towards the mining sector.

On the flipside, Westpac's share price is struggling to keep its head above breakeven after the bank handed in its full-year profit report card, while Reliance Worldwide's share price is down 1.5% at $5.11.

Looking for other blue-chips to put on your watchlist? The experts at the Motley Fool have picked three of their best blue-chip stock ideas for FY19 and you can find out what these are for free by following the link below.

Motley Fool contributor Brendon Lau owns shares of Reliance Worldwide Limited and Westpac Banking. The Motley Fool Australia has recommended ResMed Inc. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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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