We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Here's Why You Should Retain Masimo (MASI) Stock For Now
Read MoreHide Full Article
Masimo Corporation (MASI - Free Report) is well poised for growth in the coming quarters, backed by its slew of favorable study outcomes over the past few months. A robust fourth-quarter 2021 performance, along with its focus on patient monitoring, is expected to contribute further. However, concerns regarding overdependence on Masimo SET and forex woes persist.
Over the past year, this Zacks Rank #3 (Hold) stock has lost 38.6% compared with 7.5% fall of the industry. The S&P 500 has risen 8.2% in the same time frame.
The renowned global provider of non-invasive monitoring systems has a market capitalization of $7.83 billion. The company projects 8.8% growth for 2022 and expects to maintain its strong performance. Masimo has delivered an earnings surprise of 4.7% for the past four quarters, on average.
Image Source: Zacks Investment Research
Let’s delve deeper.
Positive Study Outcomes: We are optimistic about Masimo’s products, which have been subjects of various studies over the past few months. The company, in December 2021, announced the findings of a favorable study, wherein researchers evaluated the relationship between parameters derived from electroencephalogram (“EEG”) spectra and postoperative delirium in older patients undergoing elective surgery. The EEG spectra was measured using Masimo SedLine Brain Function Monitoring.
In November, Masimo announced the findings of a study demonstrating the experience of using the Masimo Rad-G Pulse Oximeter. The study evaluated that the Rad-G Pulse Oximeter supports health providers in detecting and managing pneumonia in children aged less than five years with symptoms of acute respiratory infection.
Patient-Monitoring in Focus: Masimo, during its fourth-quarter 2021 earnings call in February, confirmed that it had broadened its sales and marketing efforts for the softFlow non-invasive ventilation system for patients with respiratory distress. It also extended the reach of the LiDCO cardiac output and hemodynamic monitoring products used in surgery. The company registered increased demand for patient monitoring in hospitals, indicated by shipping of a record volume of single-patient-use sensors. The company recorded robust worldwide sales of single-patient-use sensors, driven by strong demand for its SET sensors.
Strong Q4 Results: Masimo’s solid fourth-quarter 2021 results buoy our optimism. The company recorded a robust uptick in its top line and a strong rebound in sensor sales (on the back of strong demand for set sensors) in the reported quarter, along with robust order shipments. Expansion of the company’s installed base and enhancements to its telehealth capabilities also raise optimism. Masimo’s definitive merger agreement to acquire Viper Holdings Corporation, which owns Sound United, is promising. Expansion of both margins bodes well.
Downsides
Overdependence on Masimo SET: Masimo currently derives the majority of its revenues from its primary product offerings, like the Masimo SET platform, Masimo rainbow SET platform and related products. Thus, the company’s business is highly dependent upon the continued success and market acceptance of its primary product offerings.
Forex Woes: Masimo markets its products in certain foreign markets through its subsidiaries and other international distributors. As a result, events that result in global economic uncertainties could significantly affect its results of operations in the form of gains and losses on foreign currency transactions, and potential devaluation of the local currencies of Masimo’s customers relative to the U.S. dollar.
Estimate Trend
Masimo is witnessing a positive estimate revision trend for 2022. In the past 90 days, the Zacks Consensus Estimate for its earnings per share has moved 0.2% north to $4.34.
The Zacks Consensus Estimate for the company’s first-quarter 2022 revenues is pegged at $331 million, suggesting a 10.7% improvement from the year-ago quarter’s reported number.
Key Picks
Some better-ranked stocks in the broader medical space include Henry Schein, Inc. (HSIC - Free Report) , Allscripts Healthcare Solutions, Inc. (MDRX - Free Report) and AMN Healthcare Services, Inc. (AMN - Free Report) .
Henry Schein, carrying a Zacks Rank #2 (Buy) at present, has an estimated long-term growth rate of 11.8%. HSIC’s earnings surpassed estimates in the trailing four quarters, the average beat being 25.5%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Henry Schein has gained 27.1% compared with the industry’s 5.1% growth over the past year.
Allscripts has an estimated long-term growth rate of 16.3%. MDRX’s earnings surpassed estimates in the trailing four quarters, the average beat being 64.8%. It currently flaunts a Zacks Rank #1.
Allscripts has gained 40.6% against the industry’s 51.8% fall over the past year.
AMN Healthcare has an estimated long-term growth rate of 16.2%. AMN’s earnings surpassed estimates in the trailing four quarters, the average beat being 20%. It currently sports a Zacks Rank #1.
AMN Healthcare has gained 17.9% against the industry’s 58.1% fall over the past year.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Shutterstock
Here's Why You Should Retain Masimo (MASI) Stock For Now
Masimo Corporation (MASI - Free Report) is well poised for growth in the coming quarters, backed by its slew of favorable study outcomes over the past few months. A robust fourth-quarter 2021 performance, along with its focus on patient monitoring, is expected to contribute further. However, concerns regarding overdependence on Masimo SET and forex woes persist.
Over the past year, this Zacks Rank #3 (Hold) stock has lost 38.6% compared with 7.5% fall of the industry. The S&P 500 has risen 8.2% in the same time frame.
The renowned global provider of non-invasive monitoring systems has a market capitalization of $7.83 billion. The company projects 8.8% growth for 2022 and expects to maintain its strong performance. Masimo has delivered an earnings surprise of 4.7% for the past four quarters, on average.
Image Source: Zacks Investment Research
Let’s delve deeper.
Positive Study Outcomes: We are optimistic about Masimo’s products, which have been subjects of various studies over the past few months. The company, in December 2021, announced the findings of a favorable study, wherein researchers evaluated the relationship between parameters derived from electroencephalogram (“EEG”) spectra and postoperative delirium in older patients undergoing elective surgery. The EEG spectra was measured using Masimo SedLine Brain Function Monitoring.
In November, Masimo announced the findings of a study demonstrating the experience of using the Masimo Rad-G Pulse Oximeter. The study evaluated that the Rad-G Pulse Oximeter supports health providers in detecting and managing pneumonia in children aged less than five years with symptoms of acute respiratory infection.
Patient-Monitoring in Focus: Masimo, during its fourth-quarter 2021 earnings call in February, confirmed that it had broadened its sales and marketing efforts for the softFlow non-invasive ventilation system for patients with respiratory distress. It also extended the reach of the LiDCO cardiac output and hemodynamic monitoring products used in surgery. The company registered increased demand for patient monitoring in hospitals, indicated by shipping of a record volume of single-patient-use sensors. The company recorded robust worldwide sales of single-patient-use sensors, driven by strong demand for its SET sensors.
Strong Q4 Results: Masimo’s solid fourth-quarter 2021 results buoy our optimism. The company recorded a robust uptick in its top line and a strong rebound in sensor sales (on the back of strong demand for set sensors) in the reported quarter, along with robust order shipments. Expansion of the company’s installed base and enhancements to its telehealth capabilities also raise optimism. Masimo’s definitive merger agreement to acquire Viper Holdings Corporation, which owns Sound United, is promising. Expansion of both margins bodes well.
Downsides
Overdependence on Masimo SET: Masimo currently derives the majority of its revenues from its primary product offerings, like the Masimo SET platform, Masimo rainbow SET platform and related products. Thus, the company’s business is highly dependent upon the continued success and market acceptance of its primary product offerings.
Forex Woes: Masimo markets its products in certain foreign markets through its subsidiaries and other international distributors. As a result, events that result in global economic uncertainties could significantly affect its results of operations in the form of gains and losses on foreign currency transactions, and potential devaluation of the local currencies of Masimo’s customers relative to the U.S. dollar.
Estimate Trend
Masimo is witnessing a positive estimate revision trend for 2022. In the past 90 days, the Zacks Consensus Estimate for its earnings per share has moved 0.2% north to $4.34.
The Zacks Consensus Estimate for the company’s first-quarter 2022 revenues is pegged at $331 million, suggesting a 10.7% improvement from the year-ago quarter’s reported number.
Key Picks
Some better-ranked stocks in the broader medical space include Henry Schein, Inc. (HSIC - Free Report) , Allscripts Healthcare Solutions, Inc. (MDRX - Free Report) and AMN Healthcare Services, Inc. (AMN - Free Report) .
Henry Schein, carrying a Zacks Rank #2 (Buy) at present, has an estimated long-term growth rate of 11.8%. HSIC’s earnings surpassed estimates in the trailing four quarters, the average beat being 25.5%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Henry Schein has gained 27.1% compared with the industry’s 5.1% growth over the past year.
Allscripts has an estimated long-term growth rate of 16.3%. MDRX’s earnings surpassed estimates in the trailing four quarters, the average beat being 64.8%. It currently flaunts a Zacks Rank #1.
Allscripts has gained 40.6% against the industry’s 51.8% fall over the past year.
AMN Healthcare has an estimated long-term growth rate of 16.2%. AMN’s earnings surpassed estimates in the trailing four quarters, the average beat being 20%. It currently sports a Zacks Rank #1.
AMN Healthcare has gained 17.9% against the industry’s 58.1% fall over the past year.