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Stockchase Insights ResMed Inc. RMD-N BUY Jun 25, 2025

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

RMD has been showing positive momentum recently, it is nearing in on its all-time highs, and forward margin expansion is expected to be quite positive. Analyst estimates are trending higher, its margins have been growing, and it generats strong free cash flow, which is partly used for dividends, buybacks, and growing the balance sheet. It is trading at a reasonable valuation of 25X forward earnings, and it has structural tailwinds. We would be comfortable buying the name here today for a long-term hold.
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PAST TOP PICK

(A Top Pick Sep 25/18, Up 18%) They had a big correction in January and he got stopped out. Pity, because he missed that big run after January. We work on sleep apnea devices, which is a demographic play. A great name. Wishes he still owned it.

BUY

They make sleep apnea machines, but now make ventilators during quarter. Last-October they just reported a super quarter that pushed the stock from $180 to $220 in days. It's pulled back to $211 because of positive vaccine news. It'll get a boost from their sleep apnea machines after Covid when people will visit their doctors again.

BUY ON WEAKNESS

Shares have been knocked down. Good management.

TOP PICK

Gagdets like Goggle Watch have shown people how poorly they sleep. Resmed makes sleep apnea machines, which sees big, growing demand, and they hold 90% of the market.

(Analysts’ price target is $241.48)

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Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

TOP PICK

Stockchase Research Editor: Michael O’Reilly

RMD provides cloud based digital medical devices to assist with sleep and respiratory monitoring and treatment — a steady and reliable business model. It trades at 26x earnings and supports a respectable ROE of 25%. We like that cash reserves are growing, while debt is retired and shares bought back. We recommend setting a stop-loss at $190, looking to achieve $271 — upside potential of 22%. Yield 1.0%

(Analysts’ price target is $271.71)

BUY

His reservations about their GLP-1 business were misplaced, and the company is doing quite well.

PARTIAL BUY

They operate purely domestically, so are safe from tariffs. They report a solid quarter Wednesday and got exempted from tariffs. It could have more room to run.

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Unlock this Panic-proof Portfolio opinion with Stockchase Premium

Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

PAST TOP PICK

(A Top Pick Mar 20/25, Up 7.1%)Stockchase Research Editor: Michael O'Reilly

Our PAST TOP PICK with RMD is progressing well. To remain disciplined, we recommend trailing up the stop (from $190) to $209 at this time.

Premium content

Unlock this Panic-proof Portfolio opinion with Stockchase Premium

Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

PAST TOP PICK

(A Top Pick Mar 20/25, Up 11.5%)Stockchase Research Editor: Michael O'Reilly

Our PAST TOP PICK with RMD is progressing well. To remain disciplined, we recommend trailing up the stop (from $209) to $230 at this time.

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