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

Stock market chart in green with a rising arrow symbolising a rising share price.
Healthcare Shares

Up 2,075% in a year, why is the 4DMedical share price rocketing again on Friday?

Investors just sent 4DMedical shares surging another 20% on Friday. But why?

Read more »

A girl sits on her bed in her room while using laptop and listening to headphones.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a disappointing session for the markets this Thursday.

Read more »

Smiling couple looking at a phone at a bargain opportunity.
Share Gainers

Why Catapult, DroneShield, Infratil, and Qoria shares are charging higher today

These shares are having a good session on Thursday. But why?

Read more »

A group of happy young people watching sport on a laptop celebrate.
Share Gainers

Here are the top 10 ASX 200 shares today

It was an exceptional session for investors today.

Read more »

Excited couple celebrating success while looking at smartphone.
Share Gainers

Why 4DMedical, Brazilian Rare Earths, Clarity, and Tuas shares are racing higher today

These shares are having a better day than most on hump day.

Read more »

Woman with an amazed expression has her hands and arms out with a laptop in front of her.
Share Gainers

Why BHP, EchoIQ, Life360, and Qantas shares are racing higher today

These shares are having a solid session on Tuesday. But why?

Read more »

A neon sign says 'Top Ten'.
Share Gainers

Here are the top 10 ASX 200 shares today

Investors had a rough start to the week.

Read more »

Three people with gold streamers celebrate good news.
Gold

Guess which ASX gold stock is leaping 22% in Monday's sinking market?

Investors are piling into this junior ASX gold stock on Monday. But why?

Read more »