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ResMed Inc. (RMD), headquartered in San Diego, California, is a major player in cloud-connected devices and digital health solutions, serving millions of patients across various countries. With a market cap of $34.97 billion, ResMed focuses on improving the quality of life for individuals with sleep apnea, chronic obstructive pulmonary disease (COPD), and other respiratory conditions through innovative, technology-driven solutions.
Companies valued at $10 billion or more are classified as "large-cap" stocks and ResMed rightly fits into this category, underscoring its substantial global presence and consistent growth in the healthcare sector. As a leader in digital health and connected respiratory care, ResMed plays a critical role in enhancing patient outcomes through advanced technology and innovation.
RMD shares are trading 4.8% below their 52-week high of $255.18, which they hit on Sep. 9. The stock has gained 14.5% over the past three months, outperforming the broader S&P 500 Index ($SPX), which has gained 4.1% over the same time frame.
In the longer term, RMD is up 41.3% on a YTD basis, and the shares have gained 69.1% over the past 52 weeks. In comparison, the SPX has gained 19.8% in 2024 and rallied 28.6% over the past year.
To confirm its bullish trend, RMD has been trading above its 50-day moving average since late July and its 200-day moving average since early April.
RMD shares surged 4.2% following its Q4 earnings release on Aug. 1. Its adjusted EPS of $2.08 surpassed Wall Street estimates of $2.03. The company also missed revenue forecasts, posting $1.22 billion compared to the expected $1.21 billion. RMD expects full-year earnings to be $1.02 billion, or $6.92 per share, with revenue of $4.69 billion.
Highlighting the contrast in performance, RMD’s competitor, Boston Scientific Corporation (BSX), has outperformed both the stock and the broader index. BSX has gained 44.8% on a YTD basis.
Despite the stock's strong recent price performance, analysts are moderately bullish about RMD's prospects. The stock has a consensus rating of "Moderate Buy" from 12 analysts in coverage. The mean price target is $228.50, which indicates that the stock trades at a premium.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
