Is RMD a good stock to buy?
We came across a bullish thesis on ResMed Inc. on r/investing_discussion by Variant_Invest
In this article, we will summarize the bulls’ thesis on RMD. ResMed Inc.’s share was trading at $196.94 as of June 9th. RMD’s trailing and forward P/E were 18.99 and 16.61 respectively according to Yahoo Finance.
Billion Photos/ ResMed is a leading global sleep apnea treatment company that the market has recently mispriced due to fears around GLP-1 weight-loss drugs disrupting its core therapy demand. Despite the narrative, ResMed continues to operate in a structural demand market with an estimated 936 million sleep apnea patients globally, a base that is unlikely to be meaningfully reduced in the foreseeable future. 15 AI Stocks That Are Quietly Making Investors Rich Undervalued AI Stock Poised For Massive Gains: 10000% Upside Potential The company’s core strength lies in its consumables business, where masks, tubes and headgear are replaced every ninety days under insurance reimbursement cycles, creating highly predictable and recurring revenue streams. This segment generates gross margins above 60 percent and remains resilient because the underlying condition is anatomical, meaning even patients using GLP-1 drugs often still require CPAP therapy for residual apnea.