On Monday, ResMed earned a positive adjustment to its Relative Strength (RS) Rating, from 89 to 92.
IBD's unique RS Rating tracks technical performance by using a 1 (worst) to 99 (best) score that shows how a stock's price performance over the last 52 weeks matches up against the rest of the market.
Decades of market research reveals that the market's biggest winners tend to have an RS Rating north of 80 at the beginning of a new price run.
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The IBD 50 stock broke out earlier, but has fallen back below the prior 255.18 entry from a flat base. If a stock you're tracking breaks past a buy point then retreats 7% or more below the original entry price, it's considered a failed base. It's best to wait for the stock to form a new pattern and breakout. Also keep in mind that the most recent pattern is a later-stage base, and those involve more risk.
In terms of top and bottom line numbers, the company has posted five quarters of increasing earnings growth. Revenue gains have also risen over the same time frame.
The company earns the No. 3 rank among its peers in the Medical-Products industry group. Bioventus is the top-ranked stock within the group.
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