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ResMed Inc. (RMD), based in San Diego, California, is a leading provider of cloud-connected devices and digital health solutions, impacting millions of patients worldwide. With a market capitalization of $35 billion, the company is dedicated to enhancing the quality of life for individuals suffering from sleep apnea, chronic obstructive pulmonary disease (COPD), and other respiratory ailments through cutting-edge, technology-driven innovations.
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. The company leverages its strong position in the healthcare industry through its innovative cloud-connected devices and digital health solutions. Its robust global presence, significant expertise in respiratory care, and continuous investment in research and development aid in its industry leadership.
RMD shares are trading 7.5% below their 52-week high of $260.49, which they hit on Oct. 25. The stock has dropped 4.3% over the past three months, underperforming the broader Nasdaq Composite ($NASX), which has surged 14.7% over the same time frame.
However, RMD has demonstrated impressive long-term performance. RMD is up 40.1% on a YTD basis, and the shares have gained 42.6% over the past 52 weeks. In comparison, the NASX has gained 34.4% in 2024 and rallied 36.2% over the past year.
To confirm its bullish trend, RMD has been trading below its 50-day moving average for a couple of trading sessions and under its 200-day moving average since early March.
Shares of ResMed surged 7.1% following its Q1 earnings release on Oct. 24. Its adjusted EPS of $2.20 exceeded analyst expectations. The company's revenue of $1.2 billion also topped estimates, driven by strong performance in its Sleep and Breathing Health segment.
Highlighting the contrast in performance, RMD’s competitor, Boston Scientific Corporation (BSX), has outperformed both the stock and the broader index. BSX has gained 62.1% over the past year and 56.5% on a YTD basis.
Despite the stock's strong price performance in 2024, analysts are cautiously bullish about RMD's prospects. The stock has a consensus rating of "Moderate Buy" from 14 analysts in coverage. Further, the mean price target of $251.70 indicates an upside potential of 4.4% from the current market prices.
