Is ResMed Stock a Buy?
The COVID-19 pandemic has focused attention on a potential shortage of ventilators to keep the most severely affected patients alive when their lungs are overwhelmed by the disease. ResMed (NYSE: RMD) makes life-support ventilators and was one of six companies named when the Trump administration invoked the Defense Production Act to facilitate the production of ventilators. ResMed says its goal is to double or triple its output of the machines and increase ventilator mask production tenfold.
As a pioneer in respiratory therapy, ResMed had already attracted plenty of investor attention before the pandemic hit, with shares rising 38% last year. Yet despite the potential for additional ventilator sales, ResMed stock is up only 4% since the start of the year. Is ResMed a buy now?
Its core business is selling continuous positive airway pressure (CPAP) machines to treat obstructive sleep apnea. The condition, which causes "sleep suffocation" in patients who can't sleep and breathe at the same time, is an underdiagnosed and serious health problem that is estimated to affect over 900 million people worldwide.
Source Fool.com
