Topic: How To Invest

Power Growth Investor Hotline – Friday, August 13, 2021

Article Excerpt

RESMED INC., $275.10, is a #1 Power Buy for 2021. The firm, symbol RMD on New York, helps investors tap the growing market for medical devices used to treat sleep apnea. ResMed’s CPAP (nasal continuous positive airway pressure) medical devices are 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. The early days of the COVID-19 pandemic also increased demand for ResMed’s life support ventilators, non-invasive ventilators, and ventilation mask systems. In the three months ended June 30, 2021, the company’s revenue rose 13.7%, to $876.1 million from $770.3 million a year earlier. As the pandemic abates, the company has lost the $125 million in COVID-related ventilator sales from the year-earlier period, but its core sleep apnea and COPD patient flows…