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 Hold Masimo (MASI) in Your Portfolio
Read MoreHide Full Article
Masimo Corporation (MASI - Free Report) is well poised for growth owing to a plethora of regulatory approvals and solid momentum across its patient monitoring portfolio. However, stiff competition is persistently countering these tailwinds.
Shares of Masimo have gained 2.8% against the industry’s decline of 0.8% in the past six months.
The company with a market capitalization of $12.94 billion is a developer and marketer of a family of non-invasive monitoring systems. It anticipates an earnings improvement of19.6% over the next five years. Moreover, its earnings beat estimates in each of the trailing four quarters, the average being18.7%.
Let’s take a closer look at the factors that substantiate the company’s current Zacks Rank #3 (Hold) status.
Regulatory Approvals: Masimo has been riding high on a series of regulatory nods. In March 2021, management announced that the company’s Rad-G with Temperature received the CE marking. The handheld device offers clinically proven Signal Extraction Technology (SET) pulse oximetry, respiration rate from the pleth (RRp) and other key parameters along with clinical-grade, non-contact infrared thermometry.
While Rad-G is already approved by the FDA and is available in the United States, Rad-G with Temperature is yet to secure an approval and is currently not accessible in the country. Notably, the company is set to launch Masimo SafetyNet Opioid, which is currently under review with the FDA. Masimo SafetyNet Opioid system got a breakthrough technology designation from the FDA, which means that it may qualify for Medicare reimbursement upon the FDA clearance.
Patient Monitoring in Focus: Masimo offers mobile as well as standalone units, allowing a patient to be monitored right from the ambulance to the emergency room to the general floor until the time of his/her discharge. In February 2021, the company announced the full commercial release of Masimo SafetyNet-OPEN. It is a web and mobile-based app solution that enables businesses, schools and other organizations to screen, track and manage users as they battle against COVID-19 and other infectious diseases, such as seasonal flu.
In December 2020, the company announced that it is lending support to Renown Health by helping clinicians address the COVID-19 surge. Masimo SafetyNet is being utilized to provide care for COVID-infected patients so that they can recover in the safe confines of their homes. Further, the telehealth solution can aid clinicians to detect a possible deterioration in the home-based patients’ vital signs and intervene proactively before the situation worsens. Thus, Masimo boosted its non-invasive patient-monitoring solutions portfolio.
However, there is a factor deterring growth.
Cutthroat Competition in Niche Space: Masimo faces strong competition from larger players, such as Covidien in the pulse oximetry market. Moreover, the company faces significant rivalry from OEM distributors as well as the medical device bigwigs.
Which Way Are Estimates Trending?
For 2021, the Zacks Consensus Estimate for revenues is pegged at $1.20 billion, indicating a rise of 5.1% from the prior-year reported number. The same for earnings stands at $3.81 per share, suggesting a rise of 5.8% from the year-ago reported figure.
HillRom has a projected long-term earnings growth rate of 7.3%.
The Cooper Companies has a projected long-term earnings growth rate of 11%.
Veeva has an estimated long-term earnings growth rate of 14.5%.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
Image: Bigstock
Here's Why You Should Hold Masimo (MASI) in Your Portfolio
Masimo Corporation (MASI - Free Report) is well poised for growth owing to a plethora of regulatory approvals and solid momentum across its patient monitoring portfolio. However, stiff competition is persistently countering these tailwinds.
Shares of Masimo have gained 2.8% against the industry’s decline of 0.8% in the past six months.
The company with a market capitalization of $12.94 billion is a developer and marketer of a family of non-invasive monitoring systems. It anticipates an earnings improvement of19.6% over the next five years. Moreover, its earnings beat estimates in each of the trailing four quarters, the average being18.7%.
Let’s take a closer look at the factors that substantiate the company’s current Zacks Rank #3 (Hold) status.
Regulatory Approvals: Masimo has been riding high on a series of regulatory nods. In March 2021, management announced that the company’s Rad-G with Temperature received the CE marking. The handheld device offers clinically proven Signal Extraction Technology (SET) pulse oximetry, respiration rate from the pleth (RRp) and other key parameters along with clinical-grade, non-contact infrared thermometry.
While Rad-G is already approved by the FDA and is available in the United States, Rad-G with Temperature is yet to secure an approval and is currently not accessible in the country. Notably, the company is set to launch Masimo SafetyNet Opioid, which is currently under review with the FDA. Masimo SafetyNet Opioid system got a breakthrough technology designation from the FDA, which means that it may qualify for Medicare reimbursement upon the FDA clearance.
Patient Monitoring in Focus: Masimo offers mobile as well as standalone units, allowing a patient to be monitored right from the ambulance to the emergency room to the general floor until the time of his/her discharge. In February 2021, the company announced the full commercial release of Masimo SafetyNet-OPEN. It is a web and mobile-based app solution that enables businesses, schools and other organizations to screen, track and manage users as they battle against COVID-19 and other infectious diseases, such as seasonal flu.
In December 2020, the company announced that it is lending support to Renown Health by helping clinicians address the COVID-19 surge. Masimo SafetyNet is being utilized to provide care for COVID-infected patients so that they can recover in the safe confines of their homes. Further, the telehealth solution can aid clinicians to detect a possible deterioration in the home-based patients’ vital signs and intervene proactively before the situation worsens. Thus, Masimo boosted its non-invasive patient-monitoring solutions portfolio.
However, there is a factor deterring growth.
Cutthroat Competition in Niche Space: Masimo faces strong competition from larger players, such as Covidien in the pulse oximetry market. Moreover, the company faces significant rivalry from OEM distributors as well as the medical device bigwigs.
Which Way Are Estimates Trending?
For 2021, the Zacks Consensus Estimate for revenues is pegged at $1.20 billion, indicating a rise of 5.1% from the prior-year reported number. The same for earnings stands at $3.81 per share, suggesting a rise of 5.8% from the year-ago reported figure.
Stocks to Consider
Some better-ranked stocks from the broader medical space are HillRom Holdings , The Cooper Companies (COO - Free Report) and Veeva Systems (VEEV - Free Report) , each carrying presently a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
HillRom has a projected long-term earnings growth rate of 7.3%.
The Cooper Companies has a projected long-term earnings growth rate of 11%.
Veeva has an estimated long-term earnings growth rate of 14.5%.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
See these 7 breakthrough stocks now>>