ResMed Inc. Shows Mixed Stock Performance Amid Growing Health Tech Demand
ResMed Inc. (RMD), headquartered in San Diego, California, stands out as a major player in the market for cloud-connected devices and digital health solutions. This company is making a significant impact on millions of patients with sleep apnea, chronic obstructive pulmonary disease (COPD), and other respiratory conditions. With a market capitalization of $35 billion, ResMed focuses on enhancing patients’ quality of life through advanced technology.
ResMed’s Large-Cap Status and Industry Expertise
ResMed classifies as a “large-cap” stock, defined as companies valued at $10 billion or more. This classification highlights its substantial global footprint and consistent growth in healthcare. The company’s commitment to innovative cloud-connected devices and digital health solutions, along with its strong expertise in respiratory care and significant investment in research and development, helps solidify its leadership position in the industry.
Current Stock Performance and Market Trends
RMD shares are currently trading 7.5% lower than their 52-week high of $260.49, which was reached on October 25. Over the past three months, the stock has decreased by 4.3%, lagging behind the Nasdaq Composite ($NASX) that has risen 14.7% during the same period.
Yet, when looking at the long-term performance, RMD has shown remarkable growth. Year-to-date, the stock is up 40.1%, and over the last 52 weeks, it has gained 42.6%. In contrast, the NASX has increased by 34.4% in 2024 and 36.2% in the past year.
Technical Analysis and Earnings Results
To confirm its bullish trend, RMD has been trading below its 50-day moving average for a few sessions and below its 200-day moving average since early March.
The stock experienced a 7.1% surge following its Q1 earnings report on October 24, where it posted an adjusted EPS of $2.20, surpassing analyst forecasts. The revenue figure of $1.2 billion also exceeded expectations, driven by strong results in its Sleep and Breathing Health segment.
Competitive Landscape and Analyst Outlook
In comparison, ResMed’s competitor, Boston Scientific Corporation (BSX), has remarkably outperformed both RMD and the broader index. BSX shares have risen 62.1% over the past year and 56.5% year-to-date.
Despite the strong stock performance observed in 2024, analysts remain cautiously optimistic about RMD’s future. Currently, the stock holds a consensus rating of “Moderate Buy” from 14 analysts. The average price target stands at $251.70, indicating a potential upside of 4.4% from current market prices.
On the date of publication, Kritika Sarmah 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.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
