Is This the Right Time to Add Resmed Stock to Your Portfolio?

Resmed Inc. RMD continues to see strong demand for its market-leading AirSense 10 and AirSense 11 sleep devices. Expansion into international markets appears highly promising, supported by the company’s stable solvency. However, macroeconomic headwinds continue to raise concerns for ResMed’s operations.In the past year, this Zacks Rank #2 (Buy) stock has rallied 5.1% against the 3.2% decline of the industry. The S&P 500 composite has risen 19.5% in the said time frame.The renowned medical device company has a market capitalization of $36.23 billion. RMD has an earnings yield of 4.4% compared to the industry’s flat yield. Resmed’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 3.04%. Let’s dive deep.Upsides for RMD StockIncreased Focus on International Markets: Resmed is expanding its presence in high-growth markets like China, South Korea, India, Brazil and Eastern Europe, by implementing long-term strategies to improve the quality of patient life and reduce overall healthcare costs. Many countries’ national governments, including France, Japan, and the United States, have adopted models and taken action to accelerate the adoption of digital health, leading to the rapid evolution of digital reimbursement models across the world. In the first quarter of fiscal 2026, combined sales in the United States, Canada and Latin America, as well as in Europe, Asia and other regions, increased 10%.Recovery in Device Sales: Resmed’s increased device sales continue to drive overall revenue growth, reflecting the ongoing combined availability of AirSense 10 and AirSense 11 sleep devices to support strong underlying global demand. Global device sales increased 9% in fiscal first-quarter 2026, including 8% growth across the United States, Canada, and Latin America, and an 11% increase in combined Europe, Asia, and other markets. The company continues to increase the availability of the AirSense 11 platform to more countries by securing market-by-market regulatory clearances. Resmed launched Airsense11 in India in calendar year 2025. Additionally, it introduced the AirSense 11version of VPAP Tx, the company’s sleep lab testing and titration platform built specifically for both hospital and outpatient sleep lab environments.Favorable Solvency: Resmed looks quite comfortable from the liquidity point of view. As of Sept. 30, 2025, the company had a long-term debt of $408.7 million, much lower than its cash and cash equivalents of $1.38 billion. Short-term debt was nearly $260 million. The total debt-to-capital ratio was 6.3% at the end of the fiscal first quarter, down 3.3% on a sequential basis.Image Source: Zacks Investment ResearchConcern For RMDChallenging Macroeconomic Scenario: Resmed’s operations remain exposed to global macroeconomic conditions, geopolitical instability, the impact of tariffs and trade wars on its suppliers and other factors. Furthermore, the global supply chain may be affected, mainly through constraints on or increased cost of acquiring raw materials and electronic components, resulting in higher costs. Persistent inflationary pressure may pose a headwind to Resmed’s future profitability. In the fiscal first quarter, SG&A expenses rose 9.5% year over year.RMD Stock Estimate TrendThe Zacks Consensus Estimate for RMD’s fiscal 2026 earnings per share (EPS) has edged up 0.2% to $10.84 in the past 30 days.The Zacks Consensus Estimate for fiscal 2026 revenues is pegged at $5.58 billion, up 8.4% from the year-ago reported figure.Other Key PicksSome other top-ranked stocks in the broader medical space are Phibro Animal Health PAHC, BrightSpring Health Services BTSG and Quest Diagnostics DGX.Phibro Animal Health has an earnings yield of 7.4% compared with the industry’s 0.2% yield. Shares of the company have surged 86.2% in the past year against the industry’s 5% decline. PAHC’s earnings outpaced estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 20.8%.PAHC sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.BrightSpring Health Services, currently carrying a Zacks Rank #2, has an estimated long-term earnings growth rate of 53.3% compared with the industry’s 15.5% growth. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 45.1%. BTSG shares have surged 130.2% compared with the industry’s 5.2% growth in the past year.Quest Diagnostics, carrying a Zacks Rank #2 at present, has an earnings yield of 5.6% compared with the industry’s 5% yield. Shares of the company have jumped 13.9% compared with the industry’s 5.2% growth. DGX’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 2.5%. Radical New Technology Could Hand Investors Huge GainsQuantum Computing is the next technological revolution, and it could be even more advanced than AI.While some believed the technology was years away, it is already present and moving fast. Large hyperscalers, such as Microsoft, Google, Amazon, Oracle, and even Meta and Tesla, are scrambling to integrate quantum computing into their infrastructure.Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power.Kevin was among the early experts who recognized NVIDIA's enormous potential back in 2016. Now, he has keyed in on what could be "the next big thing" in quantum computing supremacy. Today, you have a rare chance to position your portfolio at the forefront of this opportunity.See Top Quantum Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Quest Diagnostics Incorporated (DGX): Free Stock Analysis Report ResMed Inc. (RMD): Free Stock Analysis Report Phibro Animal Health Corporation (PAHC): Free Stock Analysis Report BrightSpring Health Services, Inc. (BTSG): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks