Based in San Diego, California, ResMed Inc. (RMD) builds medical devices and digital health platforms that tackle sleep apnea, chronic obstructive pulmonary disease, along with several respiratory disorders.
The nearly $30.3 billion market cap healthcare giant also runs a growing software business that keeps patient care from falling through the cracks. Its cloud-based platforms handle remote patient monitoring, electronic health records, billing, along with healthcare administration services.
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Even with such a sprawling healthcare empire under its belt, RMD stock has had a rough ride lately. Shares have tumbled 15.3% over the past 52 weeks, badly lagging the 27.9% rally posted by the S&P 500 Index ($SPX) during the same period.
This year has not offered much breathing room either. RMD stock has dropped 13.6% year-to-date (YTD) while the broader index climbed 9.2%.
The underperformance looks even sharper beside the healthcare sector benchmark. The State Street Real Estate Select Sector SPDR ETF (XLRE) has gained 14.8% over the past year while slipping only 3.2% on a YTD basis. On both counts, XLV has comfortably stayed ahead of RMD stock.
www.barchart.com Still, ResMed may have found a fresh ace up its sleeve. On May 19, the stock climbed 1.8% intraday after the company joined forces with ŌURA, the maker of the widely used Oura Ring wearable device that tracks sleep, heart rate, body temperature, along with recovery metrics.
The partnership links users who show possible sleep apnea symptoms with ResMed’s screening tools, educational content, along with a healthcare provider network to speed up diagnosis along with treatment access worldwide.
The alliance could open a much wider runway for long term growth. Earlier detection often pushes more patients toward continuous positive airway pressure devices, masks, along with digital health services, which could steadily expand ResMed’s customer pipeline beyond traditional hospitals along with sleep clinics.
Analysts expect ResMed to deliver another solid year in fiscal 2026, which ends in June, with diluted EPS projected to climb 16.5% year over year to $11.13. The company has also beaten Wall Street’s EPS estimates in each of the past four quarters, which is noteworthy.
Wall Street currently assigns RMD stock an overall “Moderate Buy” rating. Among 20 analysts covering the company, nine carry a “Strong Buy” rating, two recommend “Moderate Buy,” eight suggest “Hold,” while one analyst has flagged a “Strong Sell.”
www.barchart.com The current analyst sentiment has also improved from three months ago, when only eight analysts rated the stock a “Strong Buy.” This shows that confidence has gradually picked up steam despite the recent pullback in share price.
On April 27, KeyBanc Capital Markets maintained its “Overweight” rating on RMD stock while trimming its price target to $290 from $302. The revised target reflected a more cautious near-term stance, although the firm still backed the company’s long term growth story.
Then on May 1, RBC Capital Markets raised its price target on RMD stock to $321 from $314 while keeping its “Outperform” rating intact. The firm pointed toward ResMed’s strong financial execution as a major reason behind the bullish adjustment.
Even after the revisions, analysts still see meaningful upside ahead for the stock. The average price target of $264.92 implies potential upside of 27.3%. Meanwhile, the Street-high target of $340 represents a gain of 63.4% from current levels.
On the date of publication, Aanchal Sugandh did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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