Here's Why You Should Add RMD Stock to Your Portfolio Now

Core Viewpoint - ResMed Inc. has demonstrated strong growth in the first quarter of fiscal 2025, primarily driven by its Mask business and device sales, although increasing debt levels pose a concern [1][9]. Group 1: Financial Performance - ResMed's shares have increased by 55.4% over the past year, outperforming the industry growth of 23.1% and the S&P 500's rise of 33% [2]. - The company has a market capitalization of $35.10 billion and an earnings yield of 14.8%, which is higher than the industry's 14.4% [2]. - ResMed's earnings have consistently surpassed estimates in the last four quarters, with an average surprise of 6.4% [2]. - The Zacks Consensus Estimate for ResMed's fiscal 2025 earnings has increased by 2.1% to $9.28 per share, with revenues projected at $5.07 billion, reflecting an 8.2% year-over-year increase [10]. Group 2: Business Segments - The Mask business has seen robust sales, benefiting from a competitor's recall and strong global demand, with an 11% year-over-year revenue increase [3][4]. - Device sales have also contributed significantly to revenue growth, with a reported global increase of 10% and 11% in the U.S., Canada, and Latin America [5][6]. - The respiratory care segment is thriving, with ongoing investments in new technologies for chronic obstructive pulmonary disease (COPD) and other respiratory conditions [7][8]. Group 3: Challenges - ResMed's long-term debt stood at $688 million as of September 30, 2024, with cash and cash equivalents of $426.4 million, raising concerns about the sustainability of its debt levels [9].