Stock Analysis | ResMed Outlook - Technical Neutrality and Strong Fundamentals Amid Mixed Analyst Signals

Market Snapshot

ResMed (RMD.N) is currently in a state of technical neutrality with a recent price rise of 0.89%. While the stock’s technical indicators remain mixed, the company’s fundamentals show robust performance with an internal diagnostic score of 9.33.

News Highlights

Recent news in the healthcare sector includes a $424.9 million municipal bond sale by Stanford Health Care, aimed at financing healthcare facility projects. Another notable development is Healthpoint Ventures’ AI-driven approach to healthcare billing, which could influence broader industry trends.

Healthcare companies are currently underperforming the market, and recent news on changes in U.S. COVID-19 vaccine policy may have long-term implications for health-tech companies like ResMed.

Analyst Views & Fundamentals

The simple average rating for ResMed is 3.88, while the performance-weighted rating is 4.66. These scores suggest a generally optimistic outlook, though the ratings show some dispersion across institutions. Notably, the current price trend of 0.89% aligns with the weighted market expectation, signaling a moderate convergence of sentiment.

Key fundamental factors include:

• Operating cash flow per share grew 13.60% year-over-year (internal diagnostic score of 7.36)
• Return on assets (ROA) stands at 4.83% (score of 9.33)
• Net income margin is 9.13% (score of 8.89)
• Price-to-book (PB) is 5.12 (score of 4.33)
• ROE-adjusted PB is 4.19 (score of 3.67)
• Total profit grew by 50.82% YoY (score of 9.33)
• Cash usage (Cash-UP) is negative at -5.46% (score of 9.33)
• Operating cash flow (CFOA) is 4.32% (score of 9.33)

Money-Flow Trends

ResMed’s fund-flow score stands at 7.8 (internal diagnostic score). Institutional and large-cap investors are showing mixed signals, with 49.48% inflow across all investor categories. Small investors are contributing 49.83% inflow, while large investors are seeing 50.21% inflow, suggesting moderate retail optimism and slightly positive institutional interest.

Key Technical Signals

Technical indicators for ResMed are showing a neutral trend with wait-and-see positioning. The MACD Death Cross has an internal diagnostic score of 7.36, indicating moderate bearish pressure. Meanwhile, WR Overbought is rated 6.66 and Marubozu White at 4.00, signaling mixed signals about short-term momentum.

Recent chart patterns include:

• MACD Death Cross on August 15
• Ex-Dividend Date and Dividend Record Date on August 14
• WR Overbought and Marubozu White on August 22

Technical indicators suggest that the market is in a volatile state with unclear direction, and long/short signals are relatively balanced. Investors are advised to monitor market changes closely.

Conclusion

ResMed currently presents a mixed but balanced outlook. With strong fundamentals, moderate inflow from retail investors, and a technical neutrality suggesting consolidation, consider waiting for a pull-back before entering new long positions. Additionally, keep an eye on upcoming earnings reports and evolving regulatory developments in healthcare that could affect the sector.