RMD Stock Analysis: Buy, Sell, or Hold?
RMD - ResMed Inc.
$188.45
-0.18 (-0.10%)
▼
5d:
-3.25%
30d:
-10.2%
90d:
-16.61%
BUY
HIGH Confidence
Analysis Updated: Jun 22, 2026 12:00 AM ET
Earnings: Jul 30, 2026
Smart Money Distribution
None View Scanner →
Strength: 6.7/10
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Interactive Price Chart (1 Month)
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Bottom Line:
✅ BUY SIGNAL: RMD trading at deep discount. Market pricing in -7.4% annual earnings decline, creating value opportunity for patient investors.
✅ BUY SIGNAL: RMD trading at deep discount. Market pricing in -7.4% annual earnings decline, creating value opportunity for patient investors.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)
50% (Hyper Growth)
EST. PRICE IN 2031
$324.07
Based on 6.5% avg growth
INTRINSIC VALUE TODAY
$201.22
6.3% Margin of Safety
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 19.6x Exit PE.
In-depth Analysis How we analyze
Valuation Analysis: RMD is currently trading at $188.45, which is considered oversold relative to its 30-day fair value range of $189.87 to $205.46. From a valuation perspective, the stock is trading at a discount (Forward PE: 15.6) compared to its historical average (19.6). Remarkably, the market is currently pricing in an annual earnings decline of 7.4% over the next few years. This pessimistic expectation contrasts with the company's recent 10.5% earnings growth, suggesting potential undervaluation if the company simply maintains stability.
Technical Outlook: Technically, RMD is in a strong downtrend. The price is currently testing key support at $184.65. A bounce from this level would confirm strength, while a break below could signal further downside.
Market Sentiment: The stock shows a mixed technical setup (45/100), with neutral trendline and momentum signals. Wall Street analysts see significant upside, with an average price target of $262.20 (+39.1%). Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Technical Outlook: Technically, RMD is in a strong downtrend. The price is currently testing key support at $184.65. A bounce from this level would confirm strength, while a break below could signal further downside.
Market Sentiment: The stock shows a mixed technical setup (45/100), with neutral trendline and momentum signals. Wall Street analysts see significant upside, with an average price target of $262.20 (+39.1%). Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Quick Decision Summary
Current Position
OVERSOLD
Historical Trading Range
$189.87 -
$205.46
Company Quality Score
62/100
(BUY)
Volume Confirmation
HIGH
Confidence Score
79.5%
All Signals
- BULLISH: Price oversold vs 30-day range
- NEUTRAL: Mixed technical signals (45/100)
- BULLISH: High volume confirmation
- BULLISH: Trading 39.1% below Wall St target ($262.20)
Trading Range Analysis
30-Day Trading Range
$189.87 -
$205.46
Current vs Trading Range
OVERSOLD
Support & Resistance Levels
Support Level
$184.65
Resistance Level
$197.41
Current Trend
Strong Downtrend
Technical data as of
Jun 22, 2026
Fundamental Context
Forward P/E (Next Year Est.)
15.57
Wall Street Target
$262.20
(+39.1%)
Revenue Growth (YoY)
10.8%
Earnings Growth (YoY)
10.5%
Profit Margin
27.4%
Valuation Discount vs History
-7.4% cheaper
PE vs Historical
15.6 vs 19.6
CHEAP
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
-7.4%
(market-implied from PE analysis)
1-Year Target
$174.50
(-7%)
2-Year Target
$161.59
(-14%)
3-Year Target
$149.63
(-21%)
3-Yr Target (if PE normalizes)
(PE: 16→20)
$188.38
(0%)
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 21.8, Growth: 8.9%)
$340.87
(+81%)
Base:
(SPY PE: 15.6, Growth: 8.9%)
$243.66
(+29%)
Bear:
(PE: 13.2, Growth: 8.9%)
$207.11
(+10%)
📈
Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (18x PE), but valuation improves significantly next year (16x PE) as earnings recover.
Trailing PE: 18.19 | Current EPS (TTM): $10.37
Bull Case
$242.20
(+29%)
Analyst growth 16.7%, PE expands to 20.0
Base Case
$220.18
(+17%)
Market implied 16.7%, PE stable at 18.2
Bear Case
$128.27
(-32%)
Severe decline -20.0%, PE contracts to 15.5
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
💡
Upside Surprise Potential
If earnings stabilize (0% growth), PE could expand from 15.6 to 19.6
Stabilization Target:
$237.25
(+25.9%)
PE Expansion Potential:
+25.9%
Share & Embed Analysis
Last updated: June 23, 2026 6:03 AM ET
Data refreshes hourly during market hours. Next update: 7:03 AM
Data refreshes hourly during market hours. Next update: 7:03 AM
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Technical Signals Check
Is RMD showing a specific setup today?
Insider Activity (6 Months)
1
Buys
14
Sells
Net
INSIDERS SELLING
Recent Transactions
Michael J Farrell
SELL
4991 shares
2026-04-07
Peter C Farrell
SELL
2000 shares
2026-04-01
Ro Khanna
SELL
2026-03-30
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