Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, ResMed (NYSE: RMD ) has earned a respected four-star ranking. The company manufactures equipment for treating sleep-disordered breathing.
With that in mind, let's take a closer look at ResMed's business and see what CAPS investors are saying about the stock right now.
ResMed facts
| Headquarters (Founded) |
San Diego (1989) |
| Market Cap |
$4.07 billion |
| Industry |
Health-care equipment |
| Trailing-12-Month Revenue |
$1.24 billion |
| Management |
Founder/Chairman/CEO Dr. Peter Farrell
CFO Brett Sandercock |
| Return on Equity (Average, Past 3 Years) |
14.7% |
| Cash/Debt |
$735.3 million / $100.2 million |
| Competitors |
Covidien (NYSE: COV ) |
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 93% of the 186 members who have rated ResMed believe the stock will outperform the S&P 500 going forward. These bulls include akakroke and kmacstepic.
Just last month, akakroke listed several of ResMed's positives: "Great management, products, financials in a 20% saturation market. Just bought Irish company with innovative, 'no touch' sleep study machine."
Over the next five years, in fact, ResMed is expected to grow its bottom line at a solid rate of 15% annually. That's faster than rival Covidien (12%), as well as other medical equipment stocks such as Baxter International (NYSE: BAX ) (10%) and Stryker (NYSE: SYK ) (11%).
CAPS member kmacstepic elaborates on the bull case:
ResMed manufactures sleep apnea equipment. Low debt, good sales earnings growth, and a huge untapped market make ResMed a 'buy'. When they come out with home testing equipment I think many more people will be diagnosed with this condition and subsequently be treated for it.
What do you think about ResMed, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!
Interested in another easy way to track ResMed? Add it to your watchlist.
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