I'm keeping an eye on two stocks in 2026: Qantas Airways Ltd (QAN) and ResMed CDI (RMD). While QAN's share price has taken a hit, dropping 4.0% since 2025, RMD's shares are soaring, up 10.9% from their 52-week low. But what does this tell us about these companies and their futures? Let's dive in.
The Airlines and Medical Device Giants
Qantas, founded in 1921, is Australia's largest airline operator. With a massive market share and diverse services, from domestic flights to freight and loyalty programs, you'd think they'd be a consumer favorite. Yet, according to Roy Morgan surveys, Qantas consistently ranks as one of the country's most distrusted brands. This paradox raises a deeper question: Why are consumers so skeptical of a seemingly dominant airline?
On the other hand, ResMed, founded in 1989, is a US-based medical equipment giant specializing in CPAP machines for sleep apnea. With operations in over 140 countries and a focus on digital health, ResMed is a global leader in its field. But what makes this company particularly fascinating is its ability to leverage its extensive digital health network to enhance patient outcomes and lower healthcare costs.
Share Price Valuation: A Double-Edged Sword
When it comes to share price valuation, both QAN and RMD are trading below their historical averages. QAN's price-sales ratio of 0.69x is significantly lower than its 5-year average of 0.88x, suggesting either a decline in sales or a drop in share price. However, revenue growth over the last three years implies that sales have been increasing. This raises a deeper question: Is the market underestimating Qantas' potential?
RMD, on the other hand, is trading at a price-sales ratio of 4.11x, down from its 5-year average of 8.70x. This could indicate that the market is re-evaluating ResMed's value proposition. But what makes this particularly fascinating is the company's ability to generate valuable insights and enhance patient outcomes through its cloud-connected devices and SaaS data.
The Future of These Stocks
Looking ahead, the future of these stocks hinges on several factors. For Qantas, the key lies in regaining consumer trust and demonstrating its ability to innovate and adapt in a competitive market. In my opinion, the airline's focus on digital transformation and customer experience will be crucial in determining its long-term success.
For ResMed, the focus should be on expanding its global footprint and diversifying its product offerings. The company's strong position in the sleep apnea market and its commitment to digital health make it a compelling investment. However, the market's re-evaluation of its value proposition raises a deeper question: Is ResMed's growth sustainable in the long term?
In conclusion, while both QAN and RMD are trading below their historical averages, their futures are far from certain. Qantas must regain consumer trust and innovate to thrive, while ResMed must continue to expand its global footprint and diversify its product offerings. As an investor, I'll be keeping a close eye on these stocks, analyzing their strategies and market dynamics to make informed decisions. But one thing is clear: these companies are not going down without a fight.
