Maxim Integrated Products, Inc. (MXIM - Free Report) is leaving no stone unturned to expand footprint in the healthcare sector on the back of its robust sensors.
The company has unveiled a biosensor module called MAX86150 that is capable of offering accurate photoplethysmogram (PPG) and electrocardiogram (ECG) measurements via mobile phones, laptops, tablets and smart speakers.
Notably, the senor is FDA certified and the first-of-its kind in the analog and mixed-signal industry. Further, the latest launch broadens the company’s key offerings and is likely to boost business growth.
Further, sensor is expected to enable the company gain traction among customers demanding for health monitoring devices.
Coming to the price performance, shares of Maxim have lost 6.2% in the past year compared with the industry’s decline of 16.9%.
However, an expanding sensor portfolio will help the stock to rebound in the long haul.
Healthcare Industry Holds Promise
Increasing demand for real time heath monitoring has created a unique space for fitness trackers, applications, wearables and other home healthcare settings in today’s fast-paced society.
Hence, designers are undertaking initiatives to provide proper and valuable health information to customers by developing technically advanced applications and devices. The aforementioned trend is aiding the adoption rate of health sensors in the market.
Per a report from Grand View Research, the global market for health sensors is expected to witness a CAGR of 17% between 2018 and 2025.
Additionally, a MarketsandMarkets report suggests that the patient monitoring device market is likely to witness a CAGR of 5.7% between 2018 and 2023 and is expected to reach $25.31 billion from $19.14 billion in 2018.
We believe Maxim is well-poised to reap benefits from these rapidly growing markets on the back of its latest biosensor module and other healthcare endeavors.
Growing Healthcare Initiatives
The company’s recent move is likely to enhance healthcare initiatives.
Apart from MAX86150, Maxim has recently introduced MAX20345 that is an ultra-low-power integrated power-management IC (PMIC). The system will offer accurate measurement for optical-sensitivity in wearables and other health applications.
Further, the company’s first wrist-worn platform named — Health Sensor Platform 2.0 —is expected to provide various health parameters to the wearable designers and health application developers by monitoring the electrocardiogram (ECG), heart rate and body temperature of an individual.
Also, the company’s wearable platforms — MAX-HEALTH-BAND and MAX-ECG-MONITOR —are fortifying its position in the booming wearable market.
We believe that the above mentioned endeavors will continue to drive the company’s performance in the consumer market.
Zacks Rank & Stock to Consider
Currently, Maxim carries Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader technology sector are Marvell Technology Group (MRVL - Free Report) , Infineon Technologies (IFNNY - Free Report) and Lattice Semiconductor (LSCC - Free Report) . While Marvell Technology and Infineon Technologies sport a Zacks Rank #1 (Strong Buy), Lattice Semiconductor carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth rate for Marvell, Infineon and Lattice is currently projected at 9.38%, 8.62% and 11.5%, respectively.
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