ResMed sells into expanding markets

Article Excerpt

ResMed’s increased production of life support ventilators, non-invasive ventilators, and ventilation mask systems is winding down as the pandemic eases. But the lower sales there have been more than offset by expanding sales for the company’s core sleep apnea products. We still believe in this leader’s strong prospects and its outlook. It’s a Power Buy. RESMED INC. $279.57 is a #1 Power Buy for 2021. The company (New York symbol RMD; TSINetwork Rating: Average) (www.resmed.com; Shares outstanding: 145.7 million; Market cap: $40.8 billion; Dividend yield: 0.6%) primarily makes and sells CPAP (nasal continuous positive airway pressure) medical devices. They are used to treat patients with sleep apnea and more. With each new machine ResMed sells, it acquires a potential long-term replacement-parts customer: the tubing, masks and so on need replacement several times a year. That provides steady, recurring revenue. At the same time, the company’s devices increasingly collect data from users about their machine use and sleeping patterns, and the effect that the machines…

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