Will the ResMed (ASX:RMD) share price continue its massive bull run?

Let's examine further.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The ResMed Inc (ASX: RMD) share price has had a stellar run this year and is currently nudging record highs.

Since the start of the year, shares in the medical device have soared more than 45%.

In comparison, the broader S&P/ASX200 Index (ASX: XJO) has only managed to gain 13% in 2021.

In the last month, shares in ResMed have continued their massive bull run.

Let's take a look at why investors have continued to push the ResMed share price higher in the past month.

three excited doctors with hands in the air

Image source: Getty Images

What's been driving the ResMed share price higher?

There have been several catalysts that have helped propel the ResMed share price higher in the last 30 days.

The first catalyst can be traced back to early last month when the medical device company released its full-year results for FY21.

ResMed reported an 8% increase in full year to US$3.2 billion and a 13% jump in non-GAAP net income to US$780.6 million.

The company also upped its quarterly dividend by 8% to US42 cents per share.

However, ResMed did flag that profit margins could be under pressure in the future.

The second catalyst that shot the ResMed share price to record highs was the launch of a new key product.

Last month, the medtech giant launched its next-generation positive airway pressure (PAP) device, AirSense 11, in the United States.

ResMed noted that the product's remote software updates and new tailored features could make it the gold standard for treating sleep apnoea.

Outlook for the ResMed share price

ResMed is a global leader in respiratory medical devices, particularly targeted towards the treatment of sleep apnoea.

In addition, the company also produces invasive and non-invasive ventilators that are used to boost the oxygen intake of patients. 

Shares in ResMed have benefited from the company's strong revenue and earnings growth.

The medtech giant has managed to maintain growth by providing industry-leading products, software and continued investment in research and development.

A recent note from leading broker Morgans indicates that the ResMed share price could continue its massive bull run.

Analysts expect the positive form to continue over the medium term, initiating a $41.34 price target on ResMed's shares.

At the time of writing, the ResMed share price is trading slightly lower for the day at $39.75.

Motley Fool contributor Nikhil Gangaram has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended ResMed. The Motley Fool Australia has recommended ResMed Inc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Gainers

a young woman raises her hands in joyful celebration as she sits at her computer in a home environment.
Share Gainers

Why Kingsgate, Neuren, Newcrest, and Pushpay shares are rising today

These ASX shares are avoiding the market selloff on Tuesday.

Read more »

A young woman wearing overalls and a yellow t-shirt kicks one leg in the air showing excitement over the latest ASX 200 shares to hit 52-week highs
Share Gainers

Why Neuren, Northern Star, Race Oncology, and Westgold shares are storming higher

These ASX shares are starting the week in a positive fashion.

Read more »

A woman wearing yellow smiles and drinks coffee while on laptop.
Share Gainers

Why APM, Macquarie Telecom, Northern Star, and Origin shares are rising today

These ASX shares are having a strong session despite the market selloff.

Read more »

Two boys with cardboard rockets strapped to their backs, indicating two ASX companies with rocketing share prices
Share Gainers

Catch these fast-rising 2 ASX shares before it's too late: Celeste

This pair of stocks rocketed up in February during reporting season, but are still great value for those willing to…

Read more »

three businessmen high five each other outside an office building with graphic images of graphs and metrics superimposed on the shot.
Share Gainers

Why Arafura, Myer, Volpara, and Xero shares are zooming higher

These ASX shares are making their shareholders smile on Thursday.

Read more »

medical asx share price represented by doctor giving thumbs up
Healthcare Shares

Guess which ASX biotech stock just rocketed 29% on big FDA news

The ASX healthcare share is attracting investor interest following FDA approval for its targeted cancer therapy compound.

Read more »

A man clenches his fists in excitement as gold coins fall from the sky.
Share Gainers

Why Mesoblast, PolyNovo, Pushpay, and Weebit Nano shares are charging higher

These ASX shares are having a strong session despite the market selloff.

Read more »

a young woman raises her hands in joyful celebration as she sits at her computer in a home environment.
Share Gainers

Why InvoCare, Pentanet, Sayona Mining, and Weebit Nano shares are storming higher

These ASX shares are having a strong session on Tuesday.

Read more »