The share price of sleep treatment specialist ResMed Inc. (ASX:RMD) hit a record high of $16.52 in Tuesday trade before retreating to close up 0.2% to $16.36.
Shareholders of the Australian listed scrip have seen their shares appreciate 48% over the last 12 months, comfortably outperforming the broader market's loss of 2%. The impressive rise has been a result of strong earnings growth from the expansion of the company's product portfolio with new masks and ongoing upgrades to its digital health solutions driving revenue growth. Effective cost control has also boosted the bottom line.
Furthermore, the falling Australian dollar has lifted the share price of the Australian listed scrip as it represents a 1/10th ownership interest in the NYSE scrip where the company has its primary listing.
Focus will now shift towards ResMed's Q2 2019 earnings report that is scheduled for release on Friday morning. The current earnings per share consensus estimate for the quarter is 92 US cents per The Wall Street Journal.
ResMed and other healthcare stocks such as CSL Limited (ASX:CSL) and Cochlear Limited (ASX:COH) have some of the best prospects for solid long-term growth at the larger end of the Australian market that is heavily weighted towards the large banks and other mature businesses.
