ResMed: Margin Of Safety Gives Investors A Good Night's SleepResMed Inc. is a leader in digital health and cloud-connected medical devices. ResMed is one of the largest respiratory care device companies globally, primarily developing and supplying flow generators, masks and accessories for the treatment of sleep apnea. Increasing diagnosis of sleep apnea combined with ageing populations and increasing prevalence of obesity is resulting in a structurally growing market . It has multiple growth drivers ahead of its 2025 goals. Better supply and production trends this year should help meet growing demand, leading to higher revenues and profitability.
NYSE:RMD is a GARP story. Growth at a reasonable price has never been cheaper in this company's history. After the stocks nearly 55% decline, Morningstar gives it a 5-star valuation score with Fair Value at $258. Today it's trading at $148.
The company's focus on fundamentally-driven growth, top-tier products addressing modern health issues, and strong moat, and exemplary capital allocation make it an appealing investment.
My model ranks RMD as the 76th best stock to own in the market.
