Here's Why ResMed (RMD) is a Strong Value Stock

Core Insights - The article discusses the Zacks Style Scores, which are designed to help investors identify stocks with the best chances of outperforming the market over the next 30 days [7][11]. Group 1: Zacks Style Scores Overview - Each stock is rated from A to F based on value, growth, and momentum characteristics, with A being the highest rating [2]. - The Value Style Score focuses on identifying attractive and discounted stocks using various financial ratios like P/E and Price/Sales [3]. - The Growth Style Score evaluates a company's financial strength and future outlook, analyzing projected and historical earnings, sales, and cash flow [8]. - The Momentum Style Score helps investors capitalize on price trends by assessing factors like one-week price change and monthly earnings estimate changes [18]. Group 2: Zacks Rank and Performance - The Zacks Rank utilizes earnings estimate revisions to assist investors in building successful portfolios, with 1 (Strong Buy) stocks achieving an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [10][19]. - Stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B are recommended for maximizing investment success [20]. - ResMed, Inc. (RMD) is highlighted as a stock to watch, holding a 2 (Buy) rating and a VGM Score of A, indicating strong potential [22]. Group 3: ResMed (RMD) Specifics - ResMed has a Value Style Score of B, supported by a forward P/E ratio of 24.93, making it attractive to value investors [14]. - Recent analyst activity shows two upward revisions in earnings estimates for fiscal 2025, with the Zacks Consensus Estimate increasing by $0.13 to$9.35 per share [23]. - ResMed has an average earnings surprise of 6.4%, indicating a positive trend in earnings performance [23].