We Ran A Stock Scan For Earnings Growth And ResMed (NYSE:RMD) Passed With Ease

In the ever-evolving world of investing, keeping a close eye on earnings growth is crucial for identifying promising stocks. Recently, we ran a stock scan focusing on earnings growth and found that ResMed (NYSE:RMD) stood out with remarkable ease. This article delves into the key drivers behind ResMed's impressive earnings growth and how it compares to its industry peers and the broader market.

ResMed, a leading provider of medical devices and cloud-based software applications for the healthcare market, has been on a tear with its earnings growth. In the past year, the company's earnings per share (EPS) grew by an impressive 20.98%, outpacing both its industry peers and the broader market. This strong earnings growth is reflected in ResMed's forward P/E ratio of 26X, which is higher than the industry average of 24.8X. Additionally, ResMed's PEG Ratio of 1.8 indicates that its earnings growth is relatively affordable compared to its stock price.



The key drivers behind ResMed's earnings growth are its innovative medical devices and software solutions for sleep and respiratory care. The company's AirSense 10 AutoSet and AirView cloud-based system have seen strong demand, contributing to its revenue growth. Moreover, ResMed's software as a service (SaaS) segment, with offerings like myAir and U-Sleep, has been a significant growth driver. Compared to other medical devices companies, ResMed's earnings growth is notable, with a projected earnings growth rate of 20.98% for the fiscal year ending June 2025.



ResMed's earnings growth trajectory has been consistently positive over the past five years. From 2019 to 2023, the company's EPS grew at a compound annual growth rate (CAGR) of 12.5%. This growth can be attributed to ResMed's strong product portfolio and expanding market reach. The company's focus on innovative sleep and respiratory care solutions has driven its earnings growth, with a particular emphasis on its cloud-based software applications and connected health solutions. Additionally, ResMed's strategic acquisitions and partnerships have further bolstered its earnings growth trajectory.

In conclusion, ResMed's impressive earnings growth is driven by its innovative products and expanding market reach. The company's strong financial performance, reflected in its forward P/E ratio, PEG ratio, and Price/Cash Flow ratio, positions it as a compelling investment opportunity in the medical devices sector. As ResMed continues to innovate and expand its offerings, investors can expect the company to maintain its impressive earnings growth trajectory.