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Masimo (MASI) Gains But Lags Market: What You Should Know

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Masimo (MASI - Free Report) closed the most recent trading day at $220.24, moving +0.75% from the previous trading session. This change lagged the S&P 500's 2.62% gain on the day. At the same time, the Dow added 3.16%, and the tech-heavy Nasdaq gained 2.06%.

MASI will be looking to display strength as it nears its next earnings release. In that report, analysts expect MASI to post earnings of $0.78 per share. This would mark year-over-year growth of 2.63%. Our most recent consensus estimate is calling for quarterly revenue of $289.33 million, up 25.99% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.14 per share and revenue of $1.04 billion. These totals would mark changes of -2.48% and +10.57%, respectively, from last year.

Any recent changes to analyst estimates for MASI should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. MASI is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that MASI has a Forward P/E ratio of 69.62 right now. This valuation marks a premium compared to its industry's average Forward P/E of 45.34.

Also, we should mention that MASI has a PEG ratio of 3.21. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Medical - Instruments stocks are, on average, holding a PEG ratio of 3.78 based on yesterday's closing prices.

The Medical - Instruments industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 83, which puts it in the top 33% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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