ResMed Inc. (RMD) Hit a 52 Week High, Can the Run Continue?

Core Viewpoint - ResMed (RMD) has shown strong stock performance, with a 4.5% increase over the past month and a 16.9% gain since the start of the year, outperforming the Zacks Medical sector and the Zacks Medical - Products industry [1][2]. Financial Performance - ResMed has consistently beaten earnings estimates, reporting an EPS of $2.37 against a consensus estimate of $2.36 in its last earnings report [2]. - For the current fiscal year, ResMed is projected to earn $10.47 per share on revenues of $5.12 billion, with a year-over-year earnings growth of 10.17%. For the next fiscal year, earnings are expected to rise to $11.35 per share on revenues of $5.51 billion, reflecting a growth of 7.53% [3]. Valuation Metrics - ResMed's stock trades at a valuation of 25.6 times the current fiscal year EPS estimates, which is higher than the peer industry average of 19.1 times. On a trailing cash flow basis, it trades at 29 times compared to the peer group's average of 10.2 times. The PEG ratio stands at 1.67, indicating it is not among the top value stocks [7]. - The company has a Value Score of C, Growth Score of B, and Momentum Score of B, resulting in a combined VGM Score of B [6]. Zacks Rank - ResMed holds a Zacks Rank of 2 (Buy), supported by favorable earnings estimate revisions from analysts. This aligns with the recommendation for investors to select stocks with Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, suggesting potential for ResMed shares in the near future [8]. Competitive Landscape - In comparison to industry peers, Phibro Animal Health Corporation (PAHC) also shows strong performance with a Zacks Rank of 1 (Strong Buy) and high scores across Value, Growth, and Momentum [9]. - PAHC is expected to post earnings of $2.30 per share on revenues of $1.28 billion for the current fiscal year, having beaten consensus estimates by 21.15% last quarter [10].