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Masimo (MASI) Hits 52-Week High: What's Aiding the Stock?
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Shares of Masimo Corporation (MASI - Free Report) scaled a new 52-week high of $192.55 on Apr 12, before closing the session marginally lower at $191.16.
In the past year, this Zacks Rank #1 (Strong Buy) stock has gained 41.7% against a 12.9% decline of the industry and the S&P 500 composite’s fall of 7.5%.
In the past five years, the company registered earnings growth of 12.7% compared with the industry’s 4.5% rise. The company’s expected growth rate of 3.5% for 2023 compares with the industry’s growth projection of 9.6%. Masimo’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 9%.
Image Source: Zacks Investment Research
Masimo is witnessing an upward trend in its stock price, prompted by its product launches. The optimism led by solid fourth-quarter 2022 performance and positive study outcomes for its products are expected to contribute. However, stiff competition and overdependence on its Signal Extraction Technology (SET) platform persist.
Let’s delve deeper.
Key Growth Drivers
Product Launches: Investors are optimistic about Masimo’s recent series of product launches. Last month, the company unveiled the newest addition to its wearable product line, the Masimo Freedom smartwatch.
On its fourth-quarter earnings call in February, Masimo discussed a series of important new product launches planned this year. The first in line will be the medical version of Masimo’s W1 watch, which is currently pending the FDA 510(k) clearance. The next product to be launched will be the STORK baby monitoring system.
Positive Study Outcomes: Investors are upbeat about Masimo’s products, which have been the subject of various studies over the past few months. In March, the company announced the findings of a prospective study, where the research was related to the ability of non-invasive, continuous Masimo pleth variability index (PVi) and other dynamic parameters to predict fluid responsiveness in children of one to three years of age who were undergoing major neurosurgery.
The same month, Masimo announced positive findings of a prospective study in which researchers assessed the use of non-invasive, continuous Masimo PVi as part of goal-directed fluid therapy to guide intraoperative fluid administration during neurosurgery.
Strong Q4 Results: Masimo’s robust fourth-quarter 2022 results buoy investors’ optimism. The company’s robust uptick in the top line and healthcare business was encouraging. The company recorded robust order shipments during the reported quarter, which was promising. The expansion of its installed base was impressive. Masimo has also been benefiting from its acquisition of Sound United, raising our optimism.
Downsides
Overdependence on Masimo SET: Masimo currently derives the majority of its revenues from its Masimo SET platform, Masimo rainbow SET platform and related products. Thus, the company’s business depends on the continued success and market acceptance of its proprietary Masimo SET and Masimo rainbow SET technologies, which serve as the basis of its primary product offerings.
Stiff Competition: Masimo operates in an intensely competitive medical device industry and is significantly affected by new product introductions and other market activities of industry participants. Many of the company’s competitors have substantially greater resources and built relationships with Group Purchasing Organizations and other hospital purchasing groups that may be more effective than Masimo’s.
Other Key Picks
A few other top-ranked stocks in the broader medical space are Hologic, Inc. (HOLX - Free Report) , Henry Schein, Inc. (HSIC - Free Report) and Becton, Dickinson and Company (BDX - Free Report) , popularly known as BD.
Hologic, carrying a Zacks Rank #2 (Buy) at present, has an estimated long-term growth rate of 15.2%. HOLX’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average beat being 30.6%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Hologic has gained 9.7% against the industry’s 12.9% decline in the past year.
Henry Schein, sporting a Zacks Rank #1 at present, has an estimated long-term growth rate of 8.1%. HSIC’s earnings surpassed estimates in three of the trailing four quarters and matched the same in the other, the average beat being 2.9%.
Henry Schein has lost 10.1% compared with the industry’s 4.3% decline over the past year.
BD, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 7.8%. BDX’s earnings surpassed estimates in all the trailing four quarters, the average beat being 6.5%.
BD has lost 6.6% compared with the industry’s 4.3% decline over the past year.
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Masimo (MASI) Hits 52-Week High: What's Aiding the Stock?
Shares of Masimo Corporation (MASI - Free Report) scaled a new 52-week high of $192.55 on Apr 12, before closing the session marginally lower at $191.16.
In the past year, this Zacks Rank #1 (Strong Buy) stock has gained 41.7% against a 12.9% decline of the industry and the S&P 500 composite’s fall of 7.5%.
In the past five years, the company registered earnings growth of 12.7% compared with the industry’s 4.5% rise. The company’s expected growth rate of 3.5% for 2023 compares with the industry’s growth projection of 9.6%. Masimo’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 9%.
Image Source: Zacks Investment Research
Masimo is witnessing an upward trend in its stock price, prompted by its product launches. The optimism led by solid fourth-quarter 2022 performance and positive study outcomes for its products are expected to contribute. However, stiff competition and overdependence on its Signal Extraction Technology (SET) platform persist.
Let’s delve deeper.
Key Growth Drivers
Product Launches: Investors are optimistic about Masimo’s recent series of product launches. Last month, the company unveiled the newest addition to its wearable product line, the Masimo Freedom smartwatch.
On its fourth-quarter earnings call in February, Masimo discussed a series of important new product launches planned this year. The first in line will be the medical version of Masimo’s W1 watch, which is currently pending the FDA 510(k) clearance. The next product to be launched will be the STORK baby monitoring system.
Positive Study Outcomes: Investors are upbeat about Masimo’s products, which have been the subject of various studies over the past few months. In March, the company announced the findings of a prospective study, where the research was related to the ability of non-invasive, continuous Masimo pleth variability index (PVi) and other dynamic parameters to predict fluid responsiveness in children of one to three years of age who were undergoing major neurosurgery.
The same month, Masimo announced positive findings of a prospective study in which researchers assessed the use of non-invasive, continuous Masimo PVi as part of goal-directed fluid therapy to guide intraoperative fluid administration during neurosurgery.
Strong Q4 Results: Masimo’s robust fourth-quarter 2022 results buoy investors’ optimism. The company’s robust uptick in the top line and healthcare business was encouraging. The company recorded robust order shipments during the reported quarter, which was promising. The expansion of its installed base was impressive. Masimo has also been benefiting from its acquisition of Sound United, raising our optimism.
Downsides
Overdependence on Masimo SET: Masimo currently derives the majority of its revenues from its Masimo SET platform, Masimo rainbow SET platform and related products. Thus, the company’s business depends on the continued success and market acceptance of its proprietary Masimo SET and Masimo rainbow SET technologies, which serve as the basis of its primary product offerings.
Stiff Competition: Masimo operates in an intensely competitive medical device industry and is significantly affected by new product introductions and other market activities of industry participants. Many of the company’s competitors have substantially greater resources and built relationships with Group Purchasing Organizations and other hospital purchasing groups that may be more effective than Masimo’s.
Other Key Picks
A few other top-ranked stocks in the broader medical space are Hologic, Inc. (HOLX - Free Report) , Henry Schein, Inc. (HSIC - Free Report) and Becton, Dickinson and Company (BDX - Free Report) , popularly known as BD.
Hologic, carrying a Zacks Rank #2 (Buy) at present, has an estimated long-term growth rate of 15.2%. HOLX’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average beat being 30.6%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Hologic has gained 9.7% against the industry’s 12.9% decline in the past year.
Henry Schein, sporting a Zacks Rank #1 at present, has an estimated long-term growth rate of 8.1%. HSIC’s earnings surpassed estimates in three of the trailing four quarters and matched the same in the other, the average beat being 2.9%.
Henry Schein has lost 10.1% compared with the industry’s 4.3% decline over the past year.
BD, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 7.8%. BDX’s earnings surpassed estimates in all the trailing four quarters, the average beat being 6.5%.
BD has lost 6.6% compared with the industry’s 4.3% decline over the past year.