San Diego-based healthcare company ResMed Inc [ASX:RMD] has seen a 16% increase in year-over-year revenue to $769.5 million. The ResMed share price is up 5.47% to $24.68 at the time of writing.
The ResMed share price and COVID-19
As a global healthcare company, ResMed had a pre-coronavirus focus on the development, manufacturing, and distribution of sleep disorder respiratory machines. ResMed then pivoted their business to create ventilators in response to the COVID-19 virus pandemic currently gripping the world.
ResMed’s CEO, Mick Farrell, commented:
‘We are operating during unprecedented times, and I am extremely proud of the way our global ResMed team has responded to the COVID-19 crisis.
‘Our primary goals are the safety and wellbeing of our team members, and the preservation of life – helping people breathe while their immune system fights this coronavirus.’
Future for ResMed share price
Noted in the results was that:
‘Revenue in the U.S., Canada, and Latin America, excluding Software as a Service, grew by 12% driven by strong sales across our mask and device product portfolios, including increased demand for our ventilators due to COVID-19.’
This could bode well for ResMed in the current climate. Right now, in the US alone there are over one million cases of COVID-19 and more than 63,000 deaths, showing that now, more than ever, people need the products that companies like ResMed produce.
On the charts, ResMed is looking strong. Having fallen to a low of $18.10 in March, if momentum persists this may be the lowest ebb for some time, in my view. The ResMed share price has rebounded well, recording only a 12.03% loss in price from the all-time high in February 2020.
As you can see, the ResMed share price has come down in the last week and seems to of found resistance at the historical level of $22.93, should if continue to fall, the level of $20.76 may come into focus. In the event of a move back to the upside, extension levels of $27.39, $28.56, and potentially $32.05 may come into play.
If you want to learn about the two types of assets that could benefit from this new investing environment, download a free copy of ‘The Coronavirus Portfolio’. In it, my colleague Lachlann Tierney runs you through the kinds of investments he thinks have the most potential in the downturn.
For Money Morning