Stock Analysis | ResMed Outlook - Technical Weakness Weighs Despite Strong Fundamentals

Market Snapshot

ResMed (RMD) is rising 1.99% despite mixed technical signals, with analysts bullish on long-term fundamentals. While the stock’s strong fundamental score of 7.23 suggests underlying strength, recent technical indicators show a weak trend.

News Highlights

• Stanford Health Care’s $424.9M bond sale highlights a broader push to fund healthcare infrastructure. While not directly related to ResMed, it underscores growing demand in the sector.
• Healthpoint Ventures’ AI-driven billing initiative points to a trend in tech-assisted healthcare operations. If successful, such innovations could boost demand for medical equipment and software—areas where ResMed has a presence.
• Changes in US vaccine policy may indirectly affect healthcare companies like ResMed, especially as post-pandemic demand shifts. However, these changes are more relevant to biotech firms than medical device makers.

Analyst Views & Fundamentals

Analysts are generally optimistic, with a simple average rating of 3.88 and a weighted performance-based rating of 4.66. While there are some differences in recommendations—recent ratings include Strong Buy, Buy, and Neutral—the consensus leans toward a positive outlook. Importantly, these bullish ratings align with the current 1.99% price rise.

Key fundamental factors and their internal diagnostic scores (0-10):

• Operating cash flow per share YoY growth: 13.60% (score: 7.23)
• EV/EBIT: 22.82 (score: 7.23)
• ROA: 4.83% (score: 7.23)
• GPM: 58.60% (score: 7.23)
• Total profit YoY growth: 50.82% (score: 7.23)
• Cash flow from operating activities: $0.0432 (score: 7.23)

Money-Flow Trends

Big money is flowing into ResMed with an overall inflow ratio of 50.45% and a fund-flow score of 7.8 (internal diagnostic score, good). Notably, inflow ratios across all block sizes—Small, Medium, Large, and Extra-large—are positive, indicating broad institutional and retail participation. This suggests strong demand and confidence in the company’s future, especially given its strong fundamentals.

Key Technical Signals

ResMed’s technical indicators show a mixed and weak trend, with 1 bullish vs 4 bearish signals. Key bearish factors include the Long Lower Shadow (internal score: 1.00) and the Ex-Dividend Date (score: 1.34), both of which historically signal downward pressure. On the positive side, the RSI Overbought indicator (score: 7.75) suggests short-term momentum.

• 2025-08-12: Bearish Engulfing pattern appeared, a historically neutral signal (score: 5.67).
• 2025-08-15: MACD Death Cross formed, suggesting a potential bearish shift (score: 4.53).
• 2025-08-14: Ex-Dividend Date, a traditionally bearish signal (score: 1.34).
• 2025-08-05: Long Lower Shadow, another bearish candlestick pattern (score: 1.00).

Overall, the key technical insights indicate weak momentum and suggest investors should avoid taking new positions without a clear reversal signal.

Conclusion

ResMed is showing strong fundamentals and healthy money flows, which support a long-term buy case. However, the recent technical weakness—highlighted by bearish candlestick patterns and key negative indicators—suggests caution. Investors should consider waiting for a pull-back or a clear breakout before entering new positions. For now, watch the RSI Overbought and MACD Death Cross for potential signs of recovery or continued bearish momentum.