ResMed shares (ASX: RMD) delivered gains of more than 47% through 2024, and seem intent on challenging the 52 week highs of $39.13 after breaking $38 in today’s session. Though we are only a few sessions into 2025, RMD has continued in similar vein, adding 2.60% so far.
The company is a prime figure in the respiratory health sector, and has caught the attention of investors worldwide with the stock also listed on the New York Stock Exchange under ticker NYSE: RMD.
Analyst coverage has been largely bullish in recent times, with the current consensus price target a little over 10% up from the latest close. The status as a strong value stock is strengthened by the various targets emphasising its attractiveness within value, growth, and momentum investing methodologies. ResMed specialises in the design, manufacture, and distribution of products for sleep-disordered breathing (SDB) and other respiratory disorders.
In the final quarter of last year, price target raises were made by Baird, RBC Capital, and KeyBanc on the US listed stock, with an initiation of coverage from Stifel also coming with a price target of $250. In comparison, throughout the same period, there were no cuts to targets, indicating improving sentiment. The firm’s PEG Ratio stands at 1.7, indicating a good balance between price and expected earnings growth.
A noteworthy factor contributing to ResMed’s reliability is its average earnings surprise of 6.4%, indicating its ability to exceed earnings expectations.
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ResMed stands out as a potentially strong opportunity within the healthcare sector, with robust financial indicators and ratings aligning with value investing principles. Plenty of additional due diligence would be needed to assess suitability, but with sentiment moving in the right direction, this one may be worth the required effort.
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