ResMed Shares Breathing Life into Big Money Portfolios

RMD designs, manufactures, and distributes respiratory equipment for sleep-related and other respiratory disorders. While it makes generators, masks, and related accessories, the company’s focus on digital health solutions differentiates it from competitors. Also, RMD’s products cater to a growing demographic of people who suffer with breathing difficulties.

In terms of earnings, RMD’s profitability is among the best, with an operating margin that has improved for five years running, hitting 29.5% in fiscal 2024. It’s also positioned to keep growing as it has for the past few years, outpacing more than 62% of its industry peers.

It’s no wonder RMD shares are up 25% this year – and they could rise more. MAPsignals data shows how Big Money investors are betting heavily on the forward picture of the stock.

ResMed Shares Under Accumulation

Institutional volumes reveal plenty. Recently, RMD has enjoyed strong investor demand, which we believe to be institutional support.

Each green bar signals unusually large volumes in RMD shares. They reflect our proprietary inflow signal, pushing the stock higher:

Plenty of health care names are under accumulation right now. But there’s a powerful fundamental story happening with ResMed.

ResMed Fundamental Analysis

Institutional support and a healthy fundamental backdrop make this company worth investigating. As you can see, RMD has had strong sales and earnings growth:

• 3-year sales growth rate (+13.6%)
• 3-year earnings growth rate (+30.5%)

Source: FactSet

Also, EPS is estimated to ramp higher this year by +10.1%.

Now it makes sense why the stock has been powering to new heights. RMD has a track record of strong financial performance.

Marrying great fundamentals with our proprietary software has found some big winning stocks over the long term.

ResMed has been a top-rated stock at MAPsignals for years. That means the stock has unusual buy pressure and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.

It’s made the rare Top 20 report multiple times in the last 20 years. The blue bars below show when RMD was a top pick…soaring with time:

Tracking unusual volumes reveals the power of money flows.

This is a trait that most outlier stocks exhibit…the best of the best. Big Money demand drives stocks upward.

ResMed Price Prediction

The RMD rally isn’t new at all. Big Money buying in the shares is signaling to take notice. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.

Disclosure: the author owns positions in RMD in personal and managed accounts at the time of publication.

If you are a Registered Investment Advisor (RIA) or are a serious investor, take your investing to the next level, learn more about the MAPsignals process here.