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Here's Why You Should Invest in Masimo (MASI) Right Now

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Shares of Masimo Corporation (MASI - Free Report) have rallied 27.3% over a year, ahead of the S&P 500 index’s 18.6% gain and the broader industry’s 20.5% rise. The stock has a market cap of $4.46 billion.

Masimo is a global medical technology company that develops and manufactures innovative noninvasive patient monitoring technologies, medical devices, and a wide array of sensors. The company’s five-year historical growth rate is also favorable at 14.4% compared with 2.8% of the S&P 500 index and 9% of the broader industry. Its current-year earnings growth is projected at 43.4%, higher than 16.9% for the broader industry and 23% for the S&P 500 index.

With solid prospects, this Zacks Rank #2 (Buy) stock is an attractive pick at present.

Let’s find out whether the recent positive trends can help sustain this stock in the long run.

The company has witnessed a positive estimate revision for the current year. The stock has seen the Zacks Consensus Estimate being revised upward with five analysts moving north in the past 60 days, with no movement in the opposite direction. Earnings per share estimates were increased around 5.4% to $2.95. The company also has a stellar average return of 13.2% over the last four quarters.

The market is upbeat about Masimo’s solid guidance, where the company expects fiscal 2017 revenues of approximately $774 million, up from the previously issued guidance of $769.0 million. Total fiscal 2017 product revenues are projected at approximately $741 million, up from the prior view of $736 million. Fiscal 2017 earnings per share are expected at around $2.95, up from $2.80.

Meanwhile, Masimo won the FDA approval and announced the U.S. release of the full family of NomoLine capnography sampling lines.

Of the latest developments, Artemis Hospital, a multi-specialty hospital in the Delhi-NCR region of India is adopting Masimo Patient SafetyNet across all hospital care areas. Patient SafetyNet allows clinicians at a central station to review the patient data being continuously relayed from bedside monitoring devices. This marks the company’s globally extended foothold.
Also, Masimo announced the full-market release of RAS-45, a single use adhesive respiration sensor for rainbow acoustic monitoring of respiration rate. This launch is expected to strengthen the company’s position in the growing global respiratory care market.

Key Picks

Other top-ranked medical stocks include Bruker Corporation (BRKR - Free Report) , Align Technology, Inc. (ALGN - Free Report) and Chemed Corporation (CHE - Free Report) . While Bruker and Align Technology sport a Zacks Rank #1 (Strong Buy), Chemed carries a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Bruker has a long-term expected earnings growth rate of 9.9%. The stock has rallied roughly 57.1% over a year.

Align Technology has a long-term expected earnings growth rate of 28.9%. The stock has skyrocketed 126.1% in a year.

Chemed has a long-term expected earnings growth rate of 10%. The stock has soared 50.9% in a year.

Zacks Editor-in-Chief Goes "All In" on This Stock

Full disclosure, Kevin Matras now has more of his own money in one particular stock than in any other. He believes in its short-term profit potential and also in its prospects to more than double by 2019. Today he reveals and explains his surprising move in a new Special Report.

Download it free >>

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