ResMed (RMD) Stock: Buy, Sell, or Hold?

RMD - ResMed Inc.

SURGICAL & MEDICAL INSTRUMENTS & APPARATUS
$230.05
3.32 (1.46%) ▲
5d: +5.1%
30d: +4.77%
90d: +15.89%
HOLD
MODERATE Confidence
Protect Your RMD Gains
Analysis Updated: Oct 9, 2026 12:00 AM ET
Earnings: Oct 29, 2026 19d
Smart Money Distribution

Options positioning is turning defensive after a sharp run-up - a pattern consistent with institutional profit-taking. View Scanner →

Signal fired Oct 7, 2026 at $225.98 · last confirmed Oct 8, 2026

Strength: 5.7/10

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Interactive Price Chart (1 Month)

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💡
Bottom Line:
📊 HOLD: RMD is fairly valued with market pricing in -0.0% annual growth. Fine to hold or accumulate slowly on dips.
See Forward Earnings Fair Value & Price Prediction →

Long-Term Wealth Forecast (2031)

Based on Analyst Consensus Growth & Historical Valuation

0% (Stagnation) 50% (Hyper Growth)
EST. PRICE IN 2031
$313.04
Based on 6.3% avg growth
INTRINSIC VALUE TODAY
$194.38
Trading above historical range

How this is calculated: We use a Growth Decay Model: starting with analyst consensus growth (adjusted above) and gradually slowing it down to a long-term terminal rate (4%) by Year 5. This provides a more realistic valuation than assuming constant hyper-growth. We then apply a 19.1x Exit PE.

In-depth Analysis How we analyze

Valuation Analysis: RMD is currently trading at $230.05, which is considered extended relative to its 30-day fair value range of $219.95 to $229.50. The stock's valuation (Forward PE: 19.0) is in line with its historical norms (19.1). At these levels, the market is pricing in -0.0% annual earnings growth. This growth rate appears achievable given the company's track record, suggesting the valuation is rational.

Technical Outlook: Technically, RMD is in a strong uptrend. The price is approaching resistance at $231.36. A breakout above this level would be a bullish signal, while rejection here could lead to consolidation.

Market Sentiment: The stock scores a mixed 52/100 on our bottoming-setup gauge, with only partial signs of a stabilized entry point. In the options market, Implied Volatility is low (0th percentile), suggesting options premiums are relatively cheap. This makes it an attractive time for long options strategies if you have a directional bias. The stock is fairly positioned - fine to hold existing positions or accumulate slowly on dips, but not an urgent buy.

Quick Decision Summary

Current Position EXTENDED
Historical Trading Range $219.95 - $229.50
Company Quality Score 56/100 (HOLD)
Volume Confirmation HIGH
Confidence Score 57.3%

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All Signals

  • BEARISH: Price extended above range
  • BULLISH: Options cheap (IV 0th percentile)
  • NEUTRAL: Mixed technical signals (52/100)
  • BULLISH: High volume confirmation
  • NEUTRAL: Near Wall St target ($250.22)
  • NEUTRAL: Market pricing in -0.0% annual earnings growth - fairly valued
  • NEUTRAL: Bottoming setup forming (52/100) — watch for confirmation

Trading Range Analysis

30-Day Trading Range $219.95 - $229.50
Current vs Trading Range EXTENDED
Expected Move (7 Days) ±$10.44 (4.5%)

Support & Resistance Levels

Support Level $218.03
Resistance Level $231.36
Current Trend Strong Uptrend
Technical data as of Oct 9, 2026

Fundamental Context

Forward P/E (Next Year Est.) 19.04
Wall Street Target $250.22 (+8.8%)
Revenue Growth (YoY) 8.6%
Earnings Growth (YoY) 2.4%
Profit Margin 27.0%
PE vs Historical 19.0 vs 19.1 FAIR
Market-Implied Price Targets If current PE multiple persists
Implied Growth (YoY): 0% (market-implied from PE analysis)
1-Year Target $230.05 (0%)
2-Year Target $230.05 (0%)
3-Year Target $230.05 (0%)
3-Yr Target (if PE normalizes) (PE: 19→19) $230.78 (+0%)
3-Year Scenarios Using analyst projected EPS growth
Bull: (PE: 19.9, Growth: 8.6%) $307.57 (+34%)
Base: (SPY PE: 19.0, Growth: 8.6%) $294.87 (+28%)
Bear: (PE: 16.2, Growth: 8.6%) $250.64 (+9%)
📈 Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (22x PE), but valuation improves significantly next year (19x PE) as earnings recover.
Trailing PE: 21.74 | Current EPS (TTM): $10.43
Bull Case $288.92 (+26%)
Analyst growth 15.8%, PE expands to 23.9
Base Case $262.66 (+14%)
Market implied 15.8%, PE stable at 21.7
Bear Case $154.18 (-33%)
Severe decline -20.0%, PE contracts to 18.5
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
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Last updated: October 09, 2026 6:09 PM ET
Data refreshes hourly during market hours. Next update: 7:09 PM
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Ticker Score Recommendation Change %
Insider Activity (6 Months)
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Buys
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Sells
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NEUTRAL

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Advanced RMD Option Strategies

Professional options setups generated by AI based on today's RMD price and gamma walls.

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