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Masimo (MASI) Hits 52-Week High on Solid Growth Prospects


Shares of Masimo Corp. MASI scaled a new 52-week high of $60.05 on Sep 19. This translates into an impressive year-to-date return of roughly 44.2%, which is significantly higher than the S&P 500 return of 4.7%.

This Zacks Rank #1 (Strong Buy) stock has a market cap of around $2.93 billion while the average volume of shares traded over the last three months is roughly 299.1K.

Key Growth Factors

We believe that Masimo's expanding product portfolio is its key catalyst. Wider adoption of non-invasive patient monitoring technology is helping the company to gain market share. Also, Masimo’s SET pulse oximetry business has considerable growth opportunities in international markets. Moreover, the recent FDA 510 (k) approvals for the Radius 7 wearable and the O3 regional oximetry device are its other positives.

This manufacturer of non-invasive monitoring technologies is currently riding on robust business. Last month, the company reported impressive second-quarter 2016 results and projected higher total revenue and earnings for the full year. These developments continue to bode well for the company, as reflected by the new high.

For 2016, Masimo projects total revenue of $689 million, up from the previous projection of $677 million. Product revenues are expected at around $658 million, up from the previous guidance of $647 million. Meanwhile, Royalty revenue is expected at $31 million, up from the previously guided $30 million.

Price and Consensus

Price and Consensus | Quote

Masimo forecasts gross margin of approximately 65%, up from 64.7% guided previously. Management expects operating expense of approximately $314 million, which is also slightly higher than the previous guidance of $312 million. Masimo projects earnings of $2.01 per share, up from the previously projected figure of $1.83.

Other Stocks to Consider

Other favorably ranked stocks in the medical space are GW Pharmaceuticals plc GWPH, NuVasive, Inc. NUVA and Baxter International Inc. BAX. Each of these stocks sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

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