Market Pullback Reveals Low in Medical Equipment
ResMed Inc. (RMD) ResMed Inc makes medical equipment for respiratory disorders. This global company has developed products for respiratory disorders including airflow generators, diagnostic products, mask systems, headgear and other accessories. Its manufacturing operations are located in Australia, Singapore, France, Germany, Malaysia and the United States
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Resmed is a relatively boring company that manages its business well as seen by the smoothness and predictability of its earnings.
The stock pays a dividend, therefore we recommend a full position. S&P has a 4* rating, target of $57. Purple Chips 12 -18 month target: $USD 54.00
LOW VALUATION IN RESMED INC AT $USD 44.00 (RMD, $43.70) FULL POSITION
PURPLE CHIPS TARGET: $54.00 POSITION SIZE: FULL (5.0%) P/E: 18.8X DIV: $1.0 (2.3%) MKT CAP: $6.2B Debt: NIL RETURN ON CAPITAL: 31.4% EARNINGS YIELD: 6.4% 5 YR EPS Growth rate*:21.5% P/E/G Ratio: 0.87 EPS: $2.40 2014 EST.: $2.58 2015 EST.: $2.88
*Blended growth rate= 2/3 historical (5yrs), 1/3 forward.
