ResMed Inc. (RMD): A Bull Case Theory

2 weeks ago 2

Ricardo Pillai

Thu, Apr 3, 2025, 6:41 AM 2 min read

We came crossed a bullish thesis on ResMed Inc. (RMD) connected Substack by LongTermValue Research. In this article, we volition summarize the bulls’ thesis connected RMD. ResMed Inc. (RMD)'s stock was trading astatine $223 arsenic of April 2^nd. RMD’s trailing and guardant P/E were 26.33 and 21.79 respectively according to Yahoo Finance.

A doc pointing to a graph representing the diagnosis of a patient's slumber apnea.

ResMed (RMD), a $32.5 cardinal healthcare instrumentality leader, specializes successful aesculapian devices for slumber disorders, peculiarly CPAP machines, and plays a captious relation successful treating chronic respiratory conditions similar COPD. With a beardown beingness successful home-based care, ResMed besides integrates a SaaS-driven diligent monitoring system, enhancing compliance and semipermanent attraction outcomes. The institution has been gaining marketplace stock from rival Philips, positioning itself arsenic a ascendant unit successful the slumber apnea and respiratory attraction market.

Despite macroeconomic concerns, ResMed continues to show resilience, supported by beardown request and pricing power. The institution is trading astatine 23.3x guardant net for 2025 and 21.2x for 2026, with a projected EPS maturation of ~10% successful 2026. Shares are presently 16% disconnected their 30-day precocious and 26% beneath their all-time peak, reflecting broader marketplace trends alternatively than company-specific weakness. While ResMed remains a high-quality business, its valuation is not arsenic compelling arsenic it was successful precocious 2023 erstwhile shares traded adjacent $150. A further pullback into a mid-to-high teens P/E scope would contiguous a much charismatic buying opportunity, making ResMed a apical campaigner for semipermanent investors seeking vulnerability to the increasing slumber and respiratory attraction market.

ResMed Inc. (RMD) is not connected our database of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 37 hedge money portfolios held RMD astatine the extremity of the 4th fourth which was 34 successful the erstwhile quarter. While we admit the hazard and imaginable of RMD arsenic an investment, our condemnation lies successful the content that immoderate AI stocks clasp greater committedness for delivering higher returns, and doing truthful wrong a shorter timeframe. If you are looking for an AI banal that is much promising than RMD but that trades astatine little than 5 times its earnings, cheque retired our study astir the cheapest AI stock.

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Disclosure: None. This nonfiction was primitively published astatine Insider Monkey.