New Lifetime High Reached: ResMed (RMD)
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.
Trade-Ideas LLC identified
(
) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified ResMed as such a stock due to the following factors:
- RMD has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $57.6 million.
- RMD has traded 20,956 shares today.
- RMD is trading at a new lifetime high.
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More details on RMD:
ResMed Inc. develops, manufactures, distributes, and markets medical equipment for the diagnosis, treatment, and management of respiratory disorders, with a focus on sleep-disordered breathing. The stock currently has a dividend yield of 1.6%. RMD has a PE ratio of 28.9. Currently there are 6 analysts that rate ResMed a buy, 1 analyst rates it a sell, and 3 rate it a hold.
The average volume for ResMed has been 1.0 million shares per day over the past 30 days. ResMed has a market cap of $10.0 billion and is part of the health care sector and health services industry. The stock has a beta of 0.67 and a short float of 12.7% with 22.18 days to cover. Shares are up 26.4% year-to-date as of the close of trading on Tuesday.
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Analysis:
rates ResMed as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, solid stock price performance and growth in earnings per share. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.
Highlights from the ratings report include:
- RMD's revenue growth has slightly outpaced the industry average of 1.1%. Since the same quarter one year prior, revenues rose by 10.0%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- RMD's debt-to-equity ratio is very low at 0.28 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 4.73, which clearly demonstrates the ability to cover short-term cash needs.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Health Care Equipment & Supplies industry and the overall market, RESMED INC's return on equity exceeds that of both the industry average and the S&P 500.
- Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 52.29% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, RMD should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- RESMED INC has improved earnings per share by 6.7% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, RESMED INC increased its bottom line by earning $2.40 versus $2.10 in the prior year. This year, the market expects an improvement in earnings ($2.60 versus $2.40).
- You can view the full ResMed Ratings Report.
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