RMD Stock Analysis: Buy, Sell, or Hold?

RMD - ResMed Inc.

SURGICAL & MEDICAL INSTRUMENTS & APPARATUS
$258.31
0.70 (0.27%) β–²
HOLD
MODERATE Confidence
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Last Updated: January 30, 2026
Earnings: Jan 29, 2026 0d

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Interactive Price Chart (1 Month)

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πŸ’‘
Bottom Line:
πŸ“Š HOLD: RMD shows mixed signals. Fine to hold existing positions. Not urgent to buy or sell.

Long-Term Wealth Forecast (2031)

Based on Analyst Consensus Growth & Historical Valuation

0% (Stagnation) 50% (Hyper Growth)
EST. PRICE IN 2031
$380.72
Based on 7.2% avg growth
INTRINSIC VALUE TODAY
$236.39
Trading above fair value

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 22.4x Exit PE.

In-depth Analysis How we analyze

Valuation Analysis: RMD is currently trading at $258.31, which is considered extended relative to its 30-day fair value range of $245.50 to $257.67. The stock's valuation (Forward PE: 21.4) is in line with its historical norms (22.4). Remarkably, the market is currently pricing in an annual earnings decline of 1.6% over the next few years. This pessimistic expectation contrasts with the company's recent 12.3% earnings growth, suggesting potential undervaluation if the company simply maintains stability.

Technical Outlook: Technically, RMD is in a strong downtrend. The price is approaching resistance at $264.09. A breakout above this level would be a bullish signal, while rejection here could lead to consolidation.

Market Sentiment: The stock shows a mixed technical setup (40/100), with neutral trendline and momentum signals. Wall Street analysts see significant upside, with an average price target of $292.67 (+13.6%). 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
Fair Price Range $245.50 - $257.67
Company Quality Score 57/100 (HOLD)
Volume Confirmation HIGH
Confidence Score 48.6%

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All Signals

  • BEARISH: Price extended above range
  • NEUTRAL: Mixed technical signals (40/100)
  • BULLISH: High volume confirmation
  • BULLISH: Trading below Wall St target ($292.67)

Fair Price Analysis

30-Day Fair Range $245.50 - $257.67
Current vs Fair Value EXTENDED

Support & Resistance Levels

Support Level $245.21
Resistance Level $264.09
Current Trend Strong Downtrend

Fundamental Context

Forward P/E (Next Year Est.) 21.38
Wall Street Target $292.67 (+13.6%)
Revenue Growth (YoY) 9.1%
Earnings Growth (YoY) 12.3%
Profit Margin 27.4%
Valuation Discount vs History -1.6% cheaper
PE vs Historical 21.4 vs 22.4 FAIR
Market-Implied Price Targets If current PE multiple persists
Implied Growth (YoY): -1.6% (market-implied from PE analysis)
1-Year Target $253.49 (-2%)
2-Year Target $249.43 (-3%)
3-Year Target $245.44 (-5%)
3-Yr Target (if PE normalizes) (PE: 21β†’22) $257.10 (0%)
3-Year Scenarios Using analyst projected EPS growth
Bull: (PE: 22.3, Growth: 10.3%) $360.82 (+40%)
Base: (SPY PE: 21.4, Growth: 10.3%) $346.01 (+34%)
Bear: (PE: 18.2, Growth: 10.3%) $294.11 (+14%)
πŸ“ˆ Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (26x PE), but valuation improves significantly next year (21x PE) as earnings recover.
Trailing PE: 26.18 | Current EPS (TTM): $9.76
Bull Case $346.89 (+35%)
Analyst growth 23.4%, PE expands to 28.8
Base Case $315.36 (+22%)
Market implied 23.4%, PE stable at 26.2
Bear Case $173.74 (-33%)
Severe decline -20.0%, PE contracts to 22.3
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
πŸ’‘ Upside Surprise Potential
If earnings stabilize (0% growth), PE could expand from 21.4 to 22.4
Stabilization Target: $269.84 (+4.7%)
PE Expansion Potential: +4.7%
Last updated: January 30, 2026 5:54 PM ET
Data refreshes hourly during market hours. Next update: 6:54 PM
πŸ”₯ Top Stocks Breaking Out Now
Ticker Score Recommendation Change %
Insider Activity (6 Months)
0
Buys
4
Sells
Net
INSIDERS SELLING
Recent Transactions
Michael J Farrell SELL 8009 shares 2025-10-07
Michael J Rider SELL 100 shares 2025-10-01
John Hernandez SELL 2575 shares 2025-08-18

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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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