RMD Stock Analysis: Buy, Sell, or Hold?
RMD - ResMed Inc.
$204.70
2.81 (1.39%)
▲
5d:
+2.99%
30d:
-10.27%
90d:
-19.98%
BUY
HIGH Confidence
Analysis Updated: May 18, 2026 12:00 AM ET
Earnings: Apr 30, 2026
0d
Smart Money Accumulation
RMD is down 3.6% this week, but smart money is accumulating calls. Top strike: $310 2026-07-17 with 173 OI. Call ratio: 71% View Scanner →
Strength: 6.8/10
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1 traders called RMD this week
100% bullish • 0 bearish
100% bullish • 0 bearish
Interactive Price Chart (1 Month)
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Bottom Line:
✅ BUY SIGNAL: RMD trading at deep discount. Market pricing in -6.6% annual earnings decline, creating value opportunity for patient investors.
✅ BUY SIGNAL: RMD trading at deep discount. Market pricing in -6.6% 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
$344.23
Based on 6.8% avg growth
INTRINSIC VALUE TODAY
$213.74
4.2% 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 20.4x Exit PE.
In-depth Analysis How we analyze
Valuation Analysis: RMD is currently trading at $204.69, which is considered oversold relative to its 30-day fair value range of $206.68 to $227.30. From a valuation perspective, the stock is trading at a discount (Forward PE: 16.6) compared to its historical average (20.4). Remarkably, the market is currently pricing in an annual earnings decline of 6.6% 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 $198.61. 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 $270.60 (+34.0%). 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 $198.61. 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 $270.60 (+34.0%). Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Quick Decision Summary
Current Position
OVERSOLD
Historical Trading Range
$206.68 -
$227.30
Company Quality Score
61/100
(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 34.0% below Wall St target ($270.60)
Trading Range Analysis
30-Day Trading Range
$206.68 -
$227.30
Current vs Trading Range
OVERSOLD
Support & Resistance Levels
Support Level
$198.61
Resistance Level
$213.53
Current Trend
Strong Downtrend
Technical data as of
May 18, 2026
Fundamental Context
Forward P/E (Next Year Est.)
16.61
Wall Street Target
$270.60
(+34.0%)
Revenue Growth (YoY)
10.8%
Earnings Growth (YoY)
10.5%
Profit Margin
27.4%
Valuation Discount vs History
-6.6% cheaper
PE vs Historical
16.6 vs 20.4
CHEAP
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
-6.6%
(market-implied from PE analysis)
1-Year Target
$188.56
(-7%)
2-Year Target
$176.11
(-13%)
3-Year Target
$164.49
(-19%)
3-Yr Target (if PE normalizes)
(PE: 17→20)
$202.03
(+0%)
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 22.1, Growth: 9.6%)
$353.57
(+75%)
Base:
(SPY PE: 16.6, Growth: 9.6%)
$266.09
(+32%)
Bear:
(PE: 14.1, Growth: 9.6%)
$226.18
(+12%)
📈
Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (20x PE), but valuation improves significantly next year (17x PE) as earnings recover.
Trailing PE: 19.52 | Current EPS (TTM): $10.37
Bull Case
$261.03
(+29%)
Analyst growth 17.2%, PE expands to 21.5
Base Case
$237.30
(+18%)
Market implied 17.2%, PE stable at 19.5
Bear Case
$137.67
(-32%)
Severe decline -20.0%, PE contracts to 16.6
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 16.6 to 20.4
Stabilization Target:
$247.95
(+22.8%)
PE Expansion Potential:
+22.8%
Share & Embed Analysis
Last updated: May 18, 2026 2:35 PM ET
Data refreshes hourly during market hours. Next update: 3:35 PM
Data refreshes hourly during market hours. Next update: 3:35 PM
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Technical Signals Check
Is RMD showing a specific setup today?
Insider Activity (6 Months)
1
Buys
16
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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