ResMed Stock: Is RMD Underperforming the Healthcare Sector?

San Diego, California-based ResMed Inc. (RMD) develops, manufactures, distributes, and markets medical devices and cloud-based software applications to diagnose, treat, and manage respiratory disorders in the United States and internationally. Valued at $31.5 billion, the company operates in two segments: Sleep and Breathing Health, and Residential Care Software. 

Companies with a market cap of $10 billion or more are typically called “large-cap stocks.” RMD fits squarely into that category, with a market cap above this threshold that reflects its substantial size and influence in the medical instruments and supplies industry.  

However, the stock currently trades 23.4% below its 52-week high of $284.87 recorded on Oct. 8, 2025. RMD has grown 13.5% over the past three months, outperforming the State Street Healthcare Select Sector SPDR ETF’s (XLV) 8.7% rise during the same time frame.    

In the longer term, RMD has delivered a different performance. The stock has declined 20.5% over the past 52 weeks, underperforming the 21% surge of XLV over the same period. RMD has been trading below its 200-day moving average since this month and above its 50-day moving average since July.

On Aug. 7, RMD stock declined 5.1% following the release of its Q4 2026 earnings. The company’s revenue for the quarter rose 8.6% from the prior year’s quarter and came in line with the Street’s estimates. Moreover, its adjusted EPS came in at $2.95, surpassing Wall Street’s forecasts. Despite the mixed earnings beat, the company’s operating margin amounted to 30.7%, down from 33.7% in the previous year’s quarter, with management citing higher R&D and supply chain costs amid inflation as the main driver of its margin compression, which in turn contributed towards a loss in investor confidence. 

When stacked against its rival, Becton, Dickinson and Company (BDX) has surged 22% over the past year, outperforming RMD.     

Wall Street’s view of RMD stock is somewhat bullish. Among the 21 analysts covering the stock, the overall consensus rating is “Moderate Buy.” Its mean price target of $238.20 offers a 9.1% upside potential.  

On the date of publication, Aritra Gangopadhyay did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.