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Is RMD a good stock to buy? We came across a bullish thesis on ResMed Inc. on r/investing_discussion by Variant_Invest. In this article, we will summarize the bulls’ thesis on RMD. ResMed Inc.'s share was trading at $196.94 as of June 9th. RMD’s trailing and forward P/E were 18.99 and 16.61 respectively according to Yahoo Finance.

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ResMed is a leading global sleep apnea treatment company that the market has recently mispriced due to fears around GLP-1 weight-loss drugs disrupting its core therapy demand. Despite the narrative, ResMed continues to operate in a structural demand market with an estimated 936 million sleep apnea patients globally, a base that is unlikely to be meaningfully reduced in the foreseeable future.

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The company’s core strength lies in its consumables business, where masks, tubes and headgear are replaced every ninety days under insurance reimbursement cycles, creating highly predictable and recurring revenue streams. This segment generates gross margins above 60 percent and remains resilient because the underlying condition is anatomical, meaning even patients using GLP-1 drugs often still require CPAP therapy for residual apnea.

ResMed’s AirView connected care platform further strengthens its moat, linking approximately twenty two million devices and providing payers with compliance data that reduces hospitalizations and improves care efficiency across the ecosystem. The increasing scale of this data network enhances switching costs and embeds ResMed deeper into payer and provider workflows, reinforcing long-term recurring revenue visibility.

Financially, ResMed generates approximately 2.2 billion dollars in annual free cash flow, reflecting the durability of its model and strong operating leverage. Despite this strength, the stock has been under pressure for two years due to GLP-1 driven concerns that have not been reflected in actual fundamentals. At current levels, ResMed trades at a discount to its historical 30x-plus quality multiple, offering a compelling long-term re-rating opportunity as fears normalize over time unwinds.

Previously, we covered a bullish thesis on ResMed Inc. (RMD) by LongTermValue Research in April 2025, which highlighted the company’s strong sleep apnea demand and growth outlook. RMD’s stock price has depreciated by approximately 11.68% since our coverage. Variant_Invest shares a similar view but emphasizes GLP-1 fears as overblown and highlights consumables and AirView data platform as key recurring revenue and moat drivers supporting long-term compounding.

ResMed Inc. is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 45 hedge fund portfolios held RMD at the end of the first quarter which was 44 in the previous quarter. While we acknowledge the risk and potential of RMD as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than RMD and that has 10,000% upside potential, check out our report about this cheapest AI stock.

Disclosure: None.