These healthcare stalwarts are on the rise

Article Excerpt

The pandemic presented both of these firms with unique challenges. However, each remained profitable and is well positioned to keep prospering as the economy continues to rebound. Trends now underway—as well as the strong position of these firms in key markets—will power their gains. Both are buys. RESMED INC., $241.55, is a buy. The company (New York symbol RMD; TSINetwork Rating: Average) (www.resmed.com; Shares outstanding: 146.8 million; Market cap: $35.5 billion; Dividend yield: 0.9%) helps investors tap the growing market for medical devices used to treat sleep apnea. ResMed’s CPAP (nasal continuous positive airway pressure) devices are also used to treat patients with chronic obstructive pulmonary disease as well as other respiratory conditions. With each new machine ResMed sells, it acquires a potential long-term customer for replacement parts. They include tubing, masks and so on, which must be replaced several times a year and so provide steady recurring revenue. In the three months ended September 30, 2024, tje company’s revenue rose 11.1%, to $1.22 billion from…