ResMed RMD shares rallied 4.2% in the last trading session to close at $218.4. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 6.9% gain over the past four weeks.
ResMed scored a strong price increase on investors’ optimism surrounding the company’s impending fourth quarter fiscal 2026 financial results, which is expected to release on August 6, 2026. Per the Zacks Consensus Estimate, the company’s revenues are expected to increase 9.8% year over year. Earnings per share is pegged at $11.11 for the fiscal fourth quarter, indicating 16.3% year over year improvement.
This maker of medical products for respiratory disorders is expected to post quarterly earnings of $2.90 per share in its upcoming report, which represents a year-over-year change of +13.7%. Revenues are expected to be $1.46 billion, up 8.4% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For ResMed, the consensus EPS estimate for the quarter has been revised marginally higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on RMD going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
ResMed belongs to the Zacks Medical - Products industry. Another stock from the same industry, Evolus, Inc. EOLS, closed the last trading session 1.3% higher at $6.99. Over the past month, EOLS has returned 3.5%.
For Evolus, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.01. This represents a change of +95.8% from what the company reported a year ago. Evolus currently has a Zacks Rank of #3 (Hold).
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This article originally published on Zacks Investment Research (zacks.com).