Will you miss out if you don’t buy more of this superstar ASX 200 growth stock?

FOMO. Fear of missing out. 

It’s a driver of stock buying more than what people are willing to admit.

You see a hot tip or a tempting bargain in the S&P/ASX 200 Index (ASX: XJO), then wonder if you don’t act now whether you’ll be foregoing easy money.

It’s never a good idea to buy on emotion. 

But if you do proper research into the business and it fits your investment criteria, then yes, you do need to pounce on it! Don’t ignore the low-hanging fruit.

There is one ASX 200 growth stock that, right now, many investors are agonising over.

A rollercoaster 2023

Shares for sleep apnoea device maker Resmed CDI (ASX: RMD) dropped a terrifying 37% last reporting season.

Investors were concerned about narrowing margins, but the major catalyst for the slide were fears that new GLP-1 weight loss drugs like Ozempic would dramatically reduce obesity around the world.

Obesity is a contributing factor towards sleep apnoea, so the logic went that it would severely dent ResMed’s addressable market.

However, many experts both in the investment and medical worlds insisted at the time those fears were overstated.

And maybe now the market is listening, because the ResMed share price has rocketed 33% since its September trough.

But is it worth pouncing on now?

A rejuvenated ASX 200 growth stock

ResMed has been a star performer for many investors for more than a-decade-and-a-half.

Even after the Ozempic crash last year, the stock has returned a handsome 117% over the past five years.

The company was one of the first cabs off the rank in the coming reporting season, last Thursday revealing its second quarter numbers.

And the market was pleased to see ResMed exceed expectations on pretty much every metric. Revenue, gross margin, and operating profit were all up.

All that Ozempic anxiety now seems like history.

With the shares rocketing 6.4% on that day, investors are now wondering whether they have missed out.

Professional investors are suggesting that their FOMO is justified.

According to CMC Invest, an overwhelming 18 out of 24 analysts believe that ResMed shares are a buy at the moment. Twelve of those rate the ASX 200 growth stock as a strong buy.

The post Will you miss out if you don’t buy more of this superstar ASX 200 growth stock? appeared first on The Motley Fool Australia.

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More reading

• ResMed shares rise on major Philips news
• Leading brokers name 3 ASX shares to buy today
• Why it isn’t too late to buy ResMed shares
• 5 things to watch on the ASX 200 on Monday
• Here’s how I’m targeting a generous ASX passive income in retirement!

Motley Fool contributor Tony Yoo has positions in ResMed. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended ResMed. The Motley Fool Australia has positions in and has recommended ResMed. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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