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Here's Why You Should Buy Masimo (MASI) Stock Right Now

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Masimo Corporation (MASI - Free Report) has been gaining investor confidence on continued positive results. Over the past year, the stock has rallied 41.9% against the industry’s 3.3% decline. Also, the company has outperformed the S&P 500’s 3.6% rise.

The company has an encouraging earnings surprise history, having outpaced the Zacks Consensus Estimate in each of the trailing four quarters, the average being 6.6%. Notably, the consecutive beats underline its operating efficiency. A solid view for 2019 and a slew of developments are currently working in favor of the stock.

With solid prospects, this Zacks Rank #2 (Buy) stock is an attractive investment pick for now.

What’s Working in Favor?

Solid View

For 2019, Masimo expects total revenues of $919 million on a reported basis and $918 million on an adjusted basis, calling for year-over-year growth of 10.6% at cc. The projected figure is above the previously communicated $912 million.

Earnings per share (EPS) are expected to be $3.25 compared with $3.19 stated earlier. On an adjusted basis, EPS is anticipated at $3.12, up from the previously-stated figure of $3.08.


The company recently received 510(k) clearance from the FDA for Radius PPG, which is expected to be a significant breakthrough in patient monitoring. (Read More: Masimo Gets FDA Nod for Radius PPG, Boosts Patient Monitoring)

Earlier, Masimo and Shenzhen Mindray Bio-Medical Electronics Co. announced a purchase and license agreement, under which Mindray will offer Masimo SET Measure-through Motion and Low Perfusion pulse oximetry.

Last month, Masimo announced the release of Halo ION which allows clinicians to aggregate trend data into a single continuous early warning score. Notably, each patient’s Halo ION score is displayed on the Masimo Patient SafetyNet Supplemental Remote Monitoring and Clinician Notification System.

Moreover, Masimo and Mdoloris Medical Systems recently announced CE marking of the Mdoloris Analgesia Nociception Index module for the Masimo Root Patient Monitoring and Connectivity Hub.

What Do Estimates Say?

The Zacks Consensus Estimate for second-quarter earnings per share is pegged at 73 cents. The same for revenues stands at $223 million, indicating a year-over-year rise of 5.4%.

The Zacks Consensus Estimate for full-year earnings is pegged at $3.12, suggesting 3% growth from 2018. The same for revenues stands at $919.4 billion, indicating a 7.1% rise.

Other Key Picks

A few other top-ranked stocks in the broader medical space are DENTSPLY SIRONA (XRAY - Free Report) , Penumbra (PEN - Free Report) and CONMED Corporation (CNMD - Free Report) , each carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

DENTSPLY’s long-term earnings growth rate is expected to be 11.5%.

Penumbra’s long-term earnings growth rate is projected at 21.5%.

CONMED’s long-term earnings growth rate is estimated at 13.3%.

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