We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
ResMed (RMD) at 52-Week High: What's Driving the Stock?
Read MoreHide Full Article
Share price of ResMed Inc. (RMD - Free Report) scaled a new 52-week high of $79.22 on Jun 19, eventually closing a bit lower at $78.91. The company has gained 28.1% over the past six months, ahead of the S&P 500’s 7.6% gain. The stock has a market cap of $11.19 billion.
Comparison with Broader Industry
Over the last month, the company’s share price has outperformed the Zacks categorized Medical - Products sub-industry. The stock has rallied 13.5% over this period, outshining the sub-industry’s gain of 4.9%. The company’s five-year historical growth rate is also favorable at 12.4%, as compared with 3.4% gain of the S&P 500 index and 2.8% improvement of the broader industry.
This Zacks Rank #3 (Hold) company posted a positive earnings surprise of 1.43% in the last quarter. The four-quarter average earnings beat is 1.03%.
Growth Catalysts
The market is upbeat about several recent product launches by ResMed. The company has introduced AirTouch F20 full face mask with UltraSoft memory foam recently which keeps patients on continuous positive airway pressure (CPAP) therapy comfortable throughout the night.
ResMed is focusing on product development and innovation. Notably, the company launched AirMini, the world's smallest CPAP machine and an advanced innovation for people with sleep apnea.
The company is also consistently putting efforts to expand its footprint globally. ResMed continues to invest and expand its presence in high-growth markets like China, South Korea, India, Brazil and many countries in Eastern Europe.
Apart from these, the company’s progress in the three-horizon growth strategy is impressive. Under the first horizon, which focuses on core sleep apnea, the company launched F20 and N20 in the U.S., Europe and other major markets around the world. ResMed also launched the ResMed AirMini product recently. In addition, an AirMini app has been introduced that can be used on iOS or Android smartphones.
Moving on to the second horizon, with over 200 million patients suffering from Chronic Obstructive Pulmonary Disease (COPD), the company is focused on testing models that lower cost and improve outcomes for COPD, neuromuscular disease, Duchenne muscular dystrophy and others. In this regard, we note that ResMed recently sponsored a clinical trial, named Home Oxygen Therapy - Home Mechanical Ventilation (HOT-HMV) which works on non-invasive ventilation (NIV) at home.
ResMed’s third horizon of growth comprises a portfolio of sleep health and wellness, chronic disease management as well as clinical adjacencies, including heart failure with preserved ejection fraction. In the third quarter of fiscal 2017, the CAT-HF Study was published in the Journal of American College of Cardiology. This is the first study to show that addressing sleep apnea with ResMed's ASV therapy may improve cardiovascular outcomes for people with preserved ejection fraction heart failure.
All these above factors played a pivotal role in driving the company’s share price to a new 52-week high.
Zacks Rank and Key Picks
ResMed currently carries a Zacks Rank #3 (Hold). A few better-ranked medical stocks are Align Technology, Inc. (ALGN - Free Report) , Inogen, Inc. (INGN - Free Report) and Accelerate Diagnostics, Inc. (AXDX - Free Report) . Notably, Align Technology and Inogen sport a Zacks Rank #1 (Strong Buy), while Accelerate Diagnostics carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Align Technology has an expected long-term adjusted earnings growth of almost 24.1%. The stock has added roughly 34.7% over the last three months.
Inogen has a long-term expected earnings growth rate of 17.5%. The stock has gained approximately 25.3% over the last three months.
Accelerate Diagnostics has an expected long-term adjusted earnings growth of 30%. The stock has gained around 24.5% over the last three months.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look. See the pot trades we're targeting>>
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
ResMed (RMD) at 52-Week High: What's Driving the Stock?
Share price of ResMed Inc. (RMD - Free Report) scaled a new 52-week high of $79.22 on Jun 19, eventually closing a bit lower at $78.91. The company has gained 28.1% over the past six months, ahead of the S&P 500’s 7.6% gain. The stock has a market cap of $11.19 billion.
Comparison with Broader Industry
Over the last month, the company’s share price has outperformed the Zacks categorized Medical - Products sub-industry. The stock has rallied 13.5% over this period, outshining the sub-industry’s gain of 4.9%. The company’s five-year historical growth rate is also favorable at 12.4%, as compared with 3.4% gain of the S&P 500 index and 2.8% improvement of the broader industry.
ResMed Inc. Price and Consensus
ResMed Inc. Price and Consensus | ResMed Inc. Quote
Positive Earnings Surprise
This Zacks Rank #3 (Hold) company posted a positive earnings surprise of 1.43% in the last quarter. The four-quarter average earnings beat is 1.03%.
Growth Catalysts
The market is upbeat about several recent product launches by ResMed. The company has introduced AirTouch F20 full face mask with UltraSoft memory foam recently which keeps patients on continuous positive airway pressure (CPAP) therapy comfortable throughout the night.
ResMed is focusing on product development and innovation. Notably, the company launched AirMini, the world's smallest CPAP machine and an advanced innovation for people with sleep apnea.
The company is also consistently putting efforts to expand its footprint globally. ResMed continues to invest and expand its presence in high-growth markets like China, South Korea, India, Brazil and many countries in Eastern Europe.
Apart from these, the company’s progress in the three-horizon growth strategy is impressive. Under the first horizon, which focuses on core sleep apnea, the company launched F20 and N20 in the U.S., Europe and other major markets around the world. ResMed also launched the ResMed AirMini product recently. In addition, an AirMini app has been introduced that can be used on iOS or Android smartphones.
Moving on to the second horizon, with over 200 million patients suffering from Chronic Obstructive Pulmonary Disease (COPD), the company is focused on testing models that lower cost and improve outcomes for COPD, neuromuscular disease, Duchenne muscular dystrophy and others. In this regard, we note that ResMed recently sponsored a clinical trial, named Home Oxygen Therapy - Home Mechanical Ventilation (HOT-HMV) which works on non-invasive ventilation (NIV) at home.
ResMed’s third horizon of growth comprises a portfolio of sleep health and wellness, chronic disease management as well as clinical adjacencies, including heart failure with preserved ejection fraction. In the third quarter of fiscal 2017, the CAT-HF Study was published in the Journal of American College of Cardiology. This is the first study to show that addressing sleep apnea with ResMed's ASV therapy may improve cardiovascular outcomes for people with preserved ejection fraction heart failure.
All these above factors played a pivotal role in driving the company’s share price to a new 52-week high.
Zacks Rank and Key Picks
ResMed currently carries a Zacks Rank #3 (Hold). A few better-ranked medical stocks are Align Technology, Inc. (ALGN - Free Report) , Inogen, Inc. (INGN - Free Report) and Accelerate Diagnostics, Inc. (AXDX - Free Report) . Notably, Align Technology and Inogen sport a Zacks Rank #1 (Strong Buy), while Accelerate Diagnostics carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Align Technology has an expected long-term adjusted earnings growth of almost 24.1%. The stock has added roughly 34.7% over the last three months.
Inogen has a long-term expected earnings growth rate of 17.5%. The stock has gained approximately 25.3% over the last three months.
Accelerate Diagnostics has an expected long-term adjusted earnings growth of 30%. The stock has gained around 24.5% over the last three months.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look. See the pot trades we're targeting>>