Topic: How To Invest

Power Growth Investor Hotline – Friday, May 3, 2024

Article Excerpt

RESMED INC., $216.98, is a buy. The firm, symbol RMD on New York, helps investors tap the growing market for medical devices used to treat sleep apnea. ResMed’s CPAP (nasal continuous positive airway pressure) devices are also used to treat patients with chronic obstructive pulmonary disease as well as other respiratory conditions. With each new machine ResMed sells, it also acquires a potential long-term customer for replacement parts. They include tubing, masks and so on, which must be replaced several times a year and so provide steady recurring revenue. The stock rose almost 18% this week after the company reported improved results in the latest quarter. In the three months ended March 31, 2024, ResMed’s revenue rose 7.2%, to $1.20 billion from $1.12 billion a year earlier. The increase came from higher demand for its sleep and respiratory care devices, as well as its software offerings. Excluding one-time items, earnings per share in the quarter rose 26.8%, to $2.13 from $1.68. ResMed holds $237.9…