Resmed – Strong Earnings

ResMed is under Algo Engine buy conditions and is a current holding in our ASX model portfolio.

Resmed reported better than expected 1Q21 earnings with group revenue up 10% and NPAT up 37% on the same time last year.

At 35x PE Resmed remains expensive and will need to maintain double-digit earnings growth to sustain the current valuation.

Buy on future share price weakness.

Resmed – Q4 Earnings

ResMed is under Algo Engine buy conditions and is a current holding in our ASX top 100 model portfolio.

RMD announced 4Q20 earnings, which were better-than-expected, underpinned by robust COVID-19 ventilator demand. However, modest revenue growth is expected in the near-term, implying limited near-term growth.

The 40x PE multiple looks too rich for the current earnings outlook. The forward dividend yield is 1%.

We suggest waiting for the next Algo buy signal to re-enter RMD on a pullback. Our new entry target is $22.

ResMed – Opportunity Approaches

ResMed is a current holding in our ASX 100 model portfolio.

The company reports 1Q20 earnings on 25 October and we expect revenue growth to be 15%+ and EBIT to be up 10%+ on the same time last year.

We look for an entry-level into RMD on the current price weakness and will update our readers further, following the earnings result.

 

 

Resmed – Buy

ResMed is under Algo Engine buy conditions and is a current holding in our ASX 100 model portfolio.

RMD report earnings on the 24th Oct and the market is looking for 10%+ in EPS growth. We expect buying support to increase ahead of the result and see support building at $19.50.

 

 

Resmed – 2Q19 Earnings

We recommend adding Resmed to your watch list.

RMDis a global company involved in the development and manufacturing of medical products for the treatment of respiratory disorders.  Global mask sales increased 10%+ on the same time last year.

Low returns from new acquisitions, disappointed investors and the soft 2Q19 earnings update resulted in the stock falling by over 10%

It’s difficult to say with certainly where buyers will step back in, but we are confident of the long-term story with Resmed.

The chart below illustrates the lower band where we see deep value for investors willing to take a 1 – 3 year outlook.