People who have trouble breathing as they sleep often turn to ResMed, which makes a face-worn breathing apparatus. Its continuous positive airway pressure (CPAP) device saves lives and is driving ResMed's sales and profits higher.
On Tuesday, the Relative Strength (RS) Rating for ResMed stock climbed into a higher percentile, rising to 72, up from 68 the day before. The upgrade puts ResMed not far beneath a key benchmark. Market research shows that the best-performing stocks often have an RS Rating north of 80 as they launch their largest runs. See if ResMed can continue rising and join that elite group.
ResMed Key Ratings Shine
Over the last four quarters San Diego-based ResMed reported EPS growth ranging from 27% to 34% on also rising revenue growth. The company has a terrific 96 EPS Rating, putting it in the top 4% of all companies for profit growth on a current and long-term basis.
It also boasts a 93 Composite Rating. The best growth stocks often have a 90 or higher Composite as they begin their biggest runs. And its B Accumulation/Distribution Rating shows that funds have been buying more of its shares than selling over the last 13 weeks.
ResMed stock has been in a consolidation pattern for several years. It hit an all-time high just above 300 in late December 2021. It dropped to a 132.24 low in late October 2023, then started climbing again.
Can You Really Time The Stock Market?
Among Top 5 In Industry Group
Tuesday afternoon the sleep apnea device maker traded at about 237, down fractionally for the day but up nearly 80% from the October 2023 low. ResMed showed 29% earnings growth in its most recent report, to $2.43 per share. Sales increased 10% to $1.28 billion.
ResMed earns the No. 5 rank among its peers in the 125-stock Medical-Products industry group. Boston Scientific is the No. 1-ranked stock in the group.
IBD's proprietary Relative Strength Rating measures share price action with a 1 (worst) to 99 (best) score. The rating shows how a stock's price movement over the last 52 weeks stacks up against all the other stocks in our database.
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