Resmed Inc stock declines amid market weakness
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 18 2024
0mins
Should l Buy RMD?
Resmed Inc's stock price fell by 5.01% as it crossed below the 20-day SMA, reflecting a challenging trading environment. The decline comes as the Nasdaq-100 and S&P 500 indices are down 1.67% and 1.29%, respectively, indicating broad market weakness. This market trend has likely influenced investor sentiment, leading to the stock's downward movement.
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Analyst Views on RMD
Wall Street analysts forecast RMD stock price to rise
11 Analyst Rating
6 Buy
5 Hold
0 Sell
Moderate Buy
Current: 247.110
Low
260.00
Averages
294.00
High
345.00
Current: 247.110
Low
260.00
Averages
294.00
High
345.00
About RMD
ResMed Inc. is a holding company. The Company, through its subsidiaries, in the development, manufacturing, distribution and marketing of medical devices and cloud-based software applications that diagnose, treat and manage respiratory disorders, including sleep disordered breathing (SDB), chronic obstructive pulmonary disease, neuromuscular disease and other chronic diseases. Its segments include Sleep and Breathing Health segment and the Residential Care Software segment. It also operates a Software as a Service (SaaS) business in the United States and Germany that includes out-of-hospital software platforms designed to support the professionals and caregivers who help people stay healthy in the home or care setting of their choice. Its products and solutions are designed to improve patients' quality of life and reduce the impact of chronic disease. Its cloud-based digital health software applications, along with its devices, are designed to provide connected care.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
ResMed: Growth Driven by Digital Technologies
- Market Leadership: ResMed holds a market value of nearly $38 billion in the respiratory care device sector, with an average annual growth rate of 15.6% over the past 15 years, although its growth has slowed to 6.5% annually over the last three years, indicating sustained market demand and growth potential.
- Strong Financial Performance: In the second quarter of fiscal 2026, ResMed achieved an 11% year-over-year revenue increase and an 18% rise in operating income, reflecting the growing impact of its digital health ecosystem in meeting customer needs across over 140 countries.
- R&D Investments: CEO Mick Farrell highlighted that future R&D investments will focus on next-generation market-leading masks, cloud-connected medical devices, and digital health software, positioning the company to deliver smarter and more comfortable therapy solutions while expanding its market reach.
- Attractive Stock Valuation: ResMed's forward-looking P/E ratio stands at 22, below its five-year average of 29, while its price-to-sales ratio of 7 is slightly below the five-year average of 7.8, necessitating attention to potential impacts from future reimbursement rates and alternative treatments.
See More
Analysis of Investment Value in ResMed Stock
- Sustained Growth Potential: ResMed achieved an 11% year-over-year revenue growth in Q2 of fiscal 2026, with an 18% increase in operating income, indicating strong demand in the respiratory care device market, particularly driven by its digital health ecosystem, which is expected to support sustainable, profitable growth.
- R&D Investment Drive: By investing in next-generation market-leading masks, cloud-connected medical devices, and digital health software, the company has enhanced customer motivation to use its devices, with CEO Mick Farrell highlighting that these innovations will help expand into insomnia and respiratory insufficiency, further driving growth.
- Attractive Stock Valuation: ResMed's current forward-looking P/E ratio of 22 is below its five-year average of 29, and its price-to-sales ratio of 7 is slightly lower than the five-year average of 7.8, indicating that its stock is appealingly valued in the current market environment, making it a point of interest for value investors.
- Market Competitive Landscape: ResMed holds a dominant position in the global market, particularly in competition with Koninklijke Philips, and its sustained market share and innovation capabilities position it well to maintain leadership in the future medical device market.
See More
Disney Appoints New CEO and Earnings Highlights
- New CEO Appointment: Disney has announced that Josh D’Amaro, the current chairman of Disney Experiences, will officially succeed Bob Iger as CEO on March 18, which is expected to drive strategic execution during the company's transformation phase.
- Executive Departure: The company also revealed that Kristina Schake, senior executive vice president and chief communications officer, will depart after March 18, a move that may impact internal communications and brand image management.
- Toast Earnings Beat: Toast reported fourth-quarter earnings of 16 cents per share on February 12, exceeding the analyst consensus estimate of 13 cents, with quarterly sales of $1.633 billion also surpassing expectations of $1.620 billion, indicating strong market demand.
- ServiceNow's Strong Performance: ServiceNow reported approximately $3.57 billion in fourth-quarter revenue on January 28, beating the consensus estimate of $3.53 billion, with adjusted earnings of 92 cents per share, also above the analyst estimate of 88 cents, reflecting its ongoing growth potential.
See More
Global Sleep Health Awareness Grows but Action Lags
- Awareness of Sleep Importance: The survey reveals that 53% of respondents rank sleep as the most crucial factor for a healthy life, surpassing diet and exercise, indicating a growing recognition of sleep health, yet meaningful actions to improve it remain lacking.
- Current Sleep Quality: Over half of respondents report achieving quality sleep only four nights a week or less, highlighting significant challenges in prioritizing sleep, which necessitates effective measures to enhance overall health.
- Surge in Wearable Device Usage: The use of wearable devices for sleep tracking surged from 16% in 2025 to 53% in 2026, with 58% of users employing smartwatches, showcasing the potential of technology to elevate sleep awareness.
- Healthcare Consultation Gap: While 66% of respondents express willingness to seek medical help for sleep issues, only 23% actually do, indicating a clear opportunity for improving education and screening within the healthcare system to identify sleep problems earlier and provide necessary support.
See More
RESMED INC - FACILITY EXPECTED TO HIRE MORE THAN 100 EMPLOYEES
- Facility Employment: A new facility is projected to employ over 100 workers.
- Economic Impact: The establishment of this facility is expected to positively influence the local economy.
See More
RESMED INC TO LAUNCH NEW CENTER IN 2027, ENHANCING U.S. PRESENCE
Operational Launch: ResMed is set to begin operations in 2027, marking a significant milestone for the company.
Expansion Plans: The initiative aims to enhance ResMed's presence in the U.S. market, indicating a strategic move for growth.
See More
ResMed: Growth Driven by Digital Technologies
- Market Leadership: ResMed holds a market value of nearly $38 billion in the respiratory care device sector, with an average annual growth rate of 15.6% over the past 15 years, although its growth has slowed to 6.5% annually over the last three years, indicating sustained market demand and growth potential.
- Strong Financial Performance: In the second quarter of fiscal 2026, ResMed achieved an 11% year-over-year revenue increase and an 18% rise in operating income, reflecting the growing impact of its digital health ecosystem in meeting customer needs across over 140 countries.
- R&D Investments: CEO Mick Farrell highlighted that future R&D investments will focus on next-generation market-leading masks, cloud-connected medical devices, and digital health software, positioning the company to deliver smarter and more comfortable therapy solutions while expanding its market reach.
- Attractive Stock Valuation: ResMed's forward-looking P/E ratio stands at 22, below its five-year average of 29, while its price-to-sales ratio of 7 is slightly below the five-year average of 7.8, necessitating attention to potential impacts from future reimbursement rates and alternative treatments.
See More
Analysis of Investment Value in ResMed Stock
- Sustained Growth Potential: ResMed achieved an 11% year-over-year revenue growth in Q2 of fiscal 2026, with an 18% increase in operating income, indicating strong demand in the respiratory care device market, particularly driven by its digital health ecosystem, which is expected to support sustainable, profitable growth.
- R&D Investment Drive: By investing in next-generation market-leading masks, cloud-connected medical devices, and digital health software, the company has enhanced customer motivation to use its devices, with CEO Mick Farrell highlighting that these innovations will help expand into insomnia and respiratory insufficiency, further driving growth.
- Attractive Stock Valuation: ResMed's current forward-looking P/E ratio of 22 is below its five-year average of 29, and its price-to-sales ratio of 7 is slightly lower than the five-year average of 7.8, indicating that its stock is appealingly valued in the current market environment, making it a point of interest for value investors.
- Market Competitive Landscape: ResMed holds a dominant position in the global market, particularly in competition with Koninklijke Philips, and its sustained market share and innovation capabilities position it well to maintain leadership in the future medical device market.
See More
Disney Appoints New CEO and Earnings Highlights
- New CEO Appointment: Disney has announced that Josh D’Amaro, the current chairman of Disney Experiences, will officially succeed Bob Iger as CEO on March 18, which is expected to drive strategic execution during the company's transformation phase.
- Executive Departure: The company also revealed that Kristina Schake, senior executive vice president and chief communications officer, will depart after March 18, a move that may impact internal communications and brand image management.
- Toast Earnings Beat: Toast reported fourth-quarter earnings of 16 cents per share on February 12, exceeding the analyst consensus estimate of 13 cents, with quarterly sales of $1.633 billion also surpassing expectations of $1.620 billion, indicating strong market demand.
- ServiceNow's Strong Performance: ServiceNow reported approximately $3.57 billion in fourth-quarter revenue on January 28, beating the consensus estimate of $3.53 billion, with adjusted earnings of 92 cents per share, also above the analyst estimate of 88 cents, reflecting its ongoing growth potential.
See More
Global Sleep Health Awareness Grows but Action Lags
- Awareness of Sleep Importance: The survey reveals that 53% of respondents rank sleep as the most crucial factor for a healthy life, surpassing diet and exercise, indicating a growing recognition of sleep health, yet meaningful actions to improve it remain lacking.
- Current Sleep Quality: Over half of respondents report achieving quality sleep only four nights a week or less, highlighting significant challenges in prioritizing sleep, which necessitates effective measures to enhance overall health.
- Surge in Wearable Device Usage: The use of wearable devices for sleep tracking surged from 16% in 2025 to 53% in 2026, with 58% of users employing smartwatches, showcasing the potential of technology to elevate sleep awareness.
- Healthcare Consultation Gap: While 66% of respondents express willingness to seek medical help for sleep issues, only 23% actually do, indicating a clear opportunity for improving education and screening within the healthcare system to identify sleep problems earlier and provide necessary support.
See More
RESMED INC - FACILITY EXPECTED TO HIRE MORE THAN 100 EMPLOYEES
- Facility Employment: A new facility is projected to employ over 100 workers.
- Economic Impact: The establishment of this facility is expected to positively influence the local economy.
See More
RESMED INC TO LAUNCH NEW CENTER IN 2027, ENHANCING U.S. PRESENCE
Operational Launch: ResMed is set to begin operations in 2027, marking a significant milestone for the company.
Expansion Plans: The initiative aims to enhance ResMed's presence in the U.S. market, indicating a strategic move for growth.
See More
