Watch Resmed ASX:RMD and ASX:CSL Share Prices

The Resmed CDI (ASX: RMD) and CSL Limited (ASX: CSL) shares have been making waves in the stock market with fluctuations in their prices. The Resmed CDI share price has experienced a downturn of approximately 16.1% since the beginning of 2023, while CSL's share price hovers 10% below its 52-week high. This article aims to shed light on why these two stocks could be intriguing additions to your watchlist.

Resmed CDI (ASX: RMD) - A Global Health Giant

Resmed, founded in 1989 by Peter Farrell in Australia and currently headquartered in San Diego, California, has evolved into a global health powerhouse. Operating with over 10,000 employees and a presence in 140+ countries, Resmed specializes in medical equipment, particularly cloud-connectable continuous positive airway pressure (CPAP) machines for treating obstructive sleep apnea (OSA).

Business Units and Global Reach

Resmed boasts two primary business units: Sleep and Respiratory Care, and Software as a Service (SaaS). The former provides industry-leading CPAP machines, addressing sleep apnea effectively. The Respiratory Care unit extends its services from nighttime therapy to life-support ventilation. In the SaaS domain, Resmed supports durable or home medical equipment, contributing to out-of-hospital care.

Digital Health Network and Growth Prospects

Resmed's significant digital health network, powered by cloud-connected devices, positions it uniquely. Leveraging insights from its hardware and SaaS data, Resmed aims to enhance outcomes, drive insights, and reduce overall healthcare costs. Despite its size, Resmed CDI is considered a growth stock, showcasing a robust revenue growth of 12.6%.

CSL Limited (ASX: CSL) - A Biotechnology Powerhouse

CSL Limited stands as a global biotechnology company dedicated to developing and delivering innovative medicines. With a mission to save lives and improve public health, CSL operates through three main business units: CSL Behring, CSL Seqirus, and CSL Vifor.

Diverse Offerings and Global Impact

CSL Behring, acquired in 2004, focuses on manufacturing and distributing blood plasma products. Seqirus, formed through a rebranding in 2015, deals with flu-related products and pandemic-related services. Vifor contributes products for iron deficiency and nephrology, emphasizing renal and kidney care.

Plasma Collection and Rising Healthcare Spending

CSL's plasma collection unit plays a pivotal role in creating life-saving treatments for individuals with serious illnesses worldwide. Investors often view CSL as an indirect play on the increasing spending on healthcare.

Share Price Valuation and Future Outlook

Resmed CDI (ASX: RMD)

As a growth company, Resmed's share price valuation can be assessed by comparing its price-to-sales multiple over time. Currently, Resmed CDI shares exhibit a price-sales ratio of 4.00x, below its 5-year average of 7.81x, indicating potential undervaluation.

CSL Limited (ASX: CSL)

Considering its more mature business nature, CSL offers a historical dividend yield of approximately 1.28%, slightly exceeding its 5-year average of 1.24%. Investors seeking a more in-depth valuation can explore Discounted Cash Flow (DCF) and Dividend Discount Models (DDM).

Conclusion: A Strategic Watchlist Move

In the dynamic world of stock markets, the Resmed CDI and CSL Limited shares present compelling opportunities. Whether you are attracted to Resmed's global health influence or CSL's pivotal role in biotechnology, both stocks warrant a spot on your watchlist. However, prudent investors should conduct thorough research, considering various valuation models and market dynamics, before making investment decisions.