ResMed (RMD): Assessing Valuation as Investor Focus Builds Ahead of Earnings Release

ResMed (NYSE:RMD) is gearing up to release its latest earnings this Thursday afternoon, which has caught the attention of investors. The company previously edged out revenue expectations, and this report could offer fresh insight.

See our latest analysis for ResMed.

ResMed’s share price has lost some traction in recent weeks, with a 6.43% decline over the past month, but the stock still shows momentum, delivering an 11% year-to-date share price return and a 5.3% total shareholder return over the past year. While short-term jitters are common ahead of earnings, long-term investors have seen steady gains as the company’s fundamentals remain solid.

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With shares trading at a discount to analyst price targets and analysts maintaining their forecasts, investors may be considering whether ResMed represents an undervalued opportunity, or if the market has already accounted for its expected growth.

Most Popular Narrative: 14.1% Undervalued

ResMed’s most widely followed narrative estimates fair value at $295, which is well above the last close of $253.62. This puts a spotlight on the fundamentals and projections driving that gap.

Strategic acquisitions, innovation, and digital health adoption are broadening market reach, deepening customer retention, and driving resilient revenue and margin growth. Operational efficiencies and increased awareness in sleep health strengthen competitive advantages, fueling long-term earnings expansion and greater profitability.

Read the complete narrative.

What’s fueling these bullish price targets? The biggest surprises may lie in robust growth assumptions for revenue, earnings, and margins. Curious about the precise numbers and the bold future profit multiple that powers this narrative? The details behind this premium valuation might surprise you. See what makes the math add up.

Result: Fair Value of $295 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, competition from alternative therapies and shifts in reimbursement policies could limit growth. These factors may challenge the bullish outlook on ResMed’s future earnings.

Find out about the key risks to this ResMed narrative.

Build Your Own ResMed Narrative

If you want to dive deeper or have a different perspective, you're welcome to review the numbers and build your own view in just a few minutes. Do it your way.

A good starting point is our analysis highlighting 3 key rewards investors are optimistic about regarding ResMed.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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