Strength Seen in ResMed (RMD): Can Its 3.8% Jump Turn into More Strength?

ResMed (RMD Quick QuoteRMD – Free Report) shares rallied 3.8% in the last trading session to close at $213. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock’s 11.7% loss over the past four weeks.

ResMed scored a strong price increase, on investors’ optimism surrounding its impending fiscal 2025 third-quarter financial results, which is slated to release on April 23 after market close. In the last reported quarter, the company achieved robust revenue growth across all product and geographic categories. Additionally, market is also upbeat about the company’s latest launch of NightOwl – an FDA-cleared home sleep apnea test (HSAT), across the United States. 

This maker of medical products for respiratory disorders is expected to post quarterly earnings of $2.36 per share in its upcoming report, which represents a year-over-year change of +10.8%. Revenues are expected to be $1.28 billion, up 7.3% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For ResMed, the consensus EPS estimate for the quarter has been revised marginally lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn’t usually translate into price appreciation. So, make sure to keep an eye on RMD going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here >>>>

ResMed is part of the Zacks Medical – Products industry. AdaptHealth Corp. (AHCO Quick QuoteAHCO – Free Report) , another stock in the same industry, closed the last trading session 5.4% lower at $9.56. AHCO has returned -3.6% in the past month.

For AdaptHealth, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.01. This represents a change of -50% from what the company reported a year ago. AdaptHealth currently has a Zacks Rank of #3 (Hold).