ResMed Inc (RMD): Jim Cramer’s “Remarkable Stock” Finds Strength in Turbulent Healthcare

In a market roiled by trade tensions and shifting healthcare dynamics, ResMed Inc (RMD) has emerged as a resilient player, catching the attention of Jim Cramer. While the company isn’t directly tied to the surging GLP-1 drug sector, its steady performance and strategic positioning within a transforming healthcare landscape suggest it could benefit from broader industry trends. Let’s unpack how RMD is navigating these challenges—and whether Cramer’s endorsement holds water.

ResMed’s Financial Resilience: Growth Amid Tariffs

ResMed’s third-quarter results for fiscal 2025 were a bright spot in an otherwise volatile healthcare sector. The company reported 8% revenue growth and a 14% jump in operating income, driving its shares up 1.83% year-to-date—including a 10% surge in April. This outperformance is notable given the headwinds it faces: Cramer highlighted the 200% tariffs on Chinese imports as an “embargo,” which are squeezing margins for medical device manufacturers like ResMed.

Yet ResMed’s institutional backing remains strong. As of Q4 2024, 37 hedge funds held RMD shares, suggesting investors are betting on its long-term prospects despite near-term pressures. Cramer, while ranking RMD 9th on his list of discussed stocks, called it a “remarkable stock” with fundamentals that could outlast short-term volatility.

The GLP-1 Revolution: A Double-Edged Sword for Healthcare

While GLP-1 drugs (like Eli Lilly’s Mounjaro) dominate headlines for their role in weight loss and diabetes management, their impact stretches far beyond their direct applications. These drugs are reshaping consumer behavior and healthcare priorities, creating both risks and opportunities.

For example, GLP-1’s efficacy in weight management has reduced demand for bariatric surgeries, hurting companies like Intuitive Surgical (ISRG), which saw mid-single-digit declines in U.S. bariatric procedures. Conversely, the drugs’ scalability could reduce healthcare costs long-term—a theme Cramer tied to UnitedHealth Group (UNH), which benefits from lower chronic disease treatment expenses.

But how does this affect ResMed? While RMD’s core business (sleep apnea devices) isn’t directly linked to GLP-1, the broader healthcare sector’s focus on preventive care and chronic disease management aligns with its growth strategy. Cramer’s bullishness on healthcare’s undervalued potential—“you’ll have a lot of winners with these drug and medical device plays”—hints at RMD’s role in a sector ripe for reinvention.

Cramer’s Contrarian Take: Why RMD Might Outlast the AI Hype

Cramer’s analysis isn’t without skepticism. He acknowledges that some AI stocks trading at less than 5x earnings may offer faster returns than RMD. Yet he emphasizes that ResMed’s stability and 80+ IBD Relative Strength Rating (a Zacks headline noted) set it apart.

The contrast is stark: while AI stocks have lost 25% since early 2025, ResMed’s fundamentals—driven by 8% revenue growth and institutional support—suggest it’s a safer bet in a turbulent market. Cramer’s warning about trade tariffs adds urgency to his endorsement: companies adapting to geopolitical risks, like ResMed, could thrive as others falter.

The Lifeline: Healthcare’s Evolution Benefits ResMed Indirectly

GLP-1’s impact isn’t a direct lifeline for ResMed, but the drug’s success underscores a key trend: healthcare’s pivot toward innovation and cost efficiency. This benefits RMD in two ways:

1. Preventive Care Growth: GLP-1’s role in managing diabetes and obesity aligns with ResMed’s focus on chronic respiratory conditions. Both address long-term health management, a growing priority for insurers and patients.
2. Market Diversification: As GLP-1 competitors (like Merck and Regeneron) expand their pipelines, ResMed’s niche in respiratory devices becomes a complementary asset in a fragmented healthcare sector.

Conclusion: RMD’s Steady Hand in a Shifting Landscape

ResMed isn’t riding the GLP-1 wave, but it’s positioned to weather the storm. With 8% revenue growth and a 14% operating margin boost, its fundamentals are solid. Cramer’s “remarkable stock” moniker isn’t misplaced: RMD’s resilience amid tariffs and its institutional support suggest it can outlast near-term challenges.

While GLP-1’s direct impact is minimal, the broader shift toward innovation-driven healthcare gives RMD an edge. As Cramer notes, “the future is brighter than the past” for medical device companies—provided they adapt. For now, ResMed is doing just that.

Investors seeking stability in a volatile market may find RMD’s blend of strong fundamentals and long-term healthcare trends hard to dismiss.