An ASX-listed company that's been a long-time favourite among investors still has plenty of legs, according to one fund manager.
T Rowe Price Group Inc (NASDAQ: TROW) Australian equities head Randal Jenneke said Resmed CDI (ASX: RMD) stocks are now ripe for the picking.
"The valuation is now back to its most attractive level in 5 years," he told a T Rowe Price webinar last week.
"The sleep business is about to start to improve. As the US economy [improves] and there's a product cycle to come."
Resmed is a maker of medical devices that aid respiratory issues, especially in the area of sleep apnoea.
The Resmed share price had already climbed 7.18% over the week to Friday's market close. At the start of the month, it was 2% down for the year.
The business has given its shareholders a great deal of joy over the decades. The stock started at less than $1 at the turn of the millennia and has provided excellent annual returns, especially in the last dozen years.
An oldie but a goodie
Sage Capital portfolio manager Sean Fenton told The Motley Fool that Resmed's an old favourite.
"In various guises, we've owned [it] for well over a decade," he said in last week's Ask A Fund Manager.
"It had a few blips here and there from quarter to quarter but generally did very well and continued to grow and lead its segment."
Fenton agreed with Jenneke that there was more to come from the US company.
"There's still growth in its target market of sleep apnoea and improving sleep outcomes," he said.
"[The company has] invested more and more in informatics and getting closer to the customer, and they really embedded themselves into having insurance payers and employing technology and improving their product and rolling it out."
According to Jenneke, the worst economic hurdles for growth stocks would be over this year.
"We see growth in inflation peaking in 2021," he said.
"What that means is that when we get into the later part of 2021 and into 2022, we should expect the market leadership is probably going to start to change."
At the time of writing, the Resmed share price is trading at $29.87, up 5.29%.
