ResMed‘s (RMD) Relative Strength (RS) Rating shot up to 74 Monday, from 64 the day before, amid a strong gain for the medical company. ResMed stock rose above its 50-day line. It was already trading above its 200-day average.
Decades of market research reveal that the top-performing stocks tend to have an 80 or higher RS Rating as they begin their biggest price moves. See if ResMed can continue to rebound and hit that benchmark.
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ResMed formed a double-bottom base with a 252.36 buy point, beginning last October. It topped the buy point at the end of January but quickly faded from that point amid overall market consolidation. The last three trading sessions it’s perked up though.
And in a show of unusual strength, maker of CPAP breathing devices closed at 236.63, up 1.8% for the day. It did that in a session that saw the Dow Jones Industrial Index plunge 890 points.
ResMed reported 29% earnings growth last quarter to $2.43 per share. Its EPS growth over the past four quarters was 27%, 30%, 34% and then 29%. Sales grew 10% last quarter to $1.28 billion.
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ResMed Key Rating Are Outstanding
Among its other ratings ResMed has a terrific 95 IBD EPS Rating, putting it in the top 5% of all stocks for recent quarters and long-term earnings growth. It also sports a 92 Composite Rating. The score combines five separate proprietary ratings into one. The best growth stocks have a Composite Rating of 90 or better.
Its B- Accumulation/Distribution Rating points to more buying of its shares than selling by funds.
ResMed earns the No. 6 rank among its peers in the Medical-Products industry group. Boston Scientific (BSX), Penumbra (PEN) and Lantheus Holdings (LNTH) are among the top 5 highly rated stocks within the group.
IBD’s proprietary RS Rating measures market leadership by showing how a stock’s price action over the last 52 weeks measures up against that of the other stocks in our database.
This article was created automatically with Stats Perform’s Wordsmith software using data and article templates supplied by Investor’s Business Daily. An IBD journalist may have edited the article.
Please follow James DeTar on Twitter @JimDeTar
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