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

Zacks Equity Research

Masimo Corporation MASI has been gaining investor confidence on continued positive results. Over the past year, the stock has rallied 57% compared with the industry’s 9.4% rise. Also, the company has outperformed the S&P 500’s 8.2% rise.

The company has an encouraging earnings surprise history, having outpaced the Zacks Consensus Estimate in each of the trailing three quarters, the average being 7.1%. Notably, the consecutive beats underline its operating efficiency. A solid view for 2019 and a slew of developments are 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 $912 million, reflecting year-over-year growth of 10.7% and 9.9% at constant currency. Adjusted product earnings per diluted share of $3.08 is expected to increase 16.2% from 2018.

Adjusted EBITDA is projected at 30.4% for 2019.


Masimo has seen a slew of positive developments of late.

Last month, the company announced FDA clearance of the Rad-67 Pulse CO-Oximeter with Spot-check Next Generation SpHb. (Read More: Masimo Gets FDA Clearance for Rad-67 Monitoring Device)

Additionally, St. Luke’s, a regional network of hospitals, has expanded their use of a variety of Masimo technologies, which has led to impressive outcomes. Notably, St. Luke’s has been utilizing Masimo’s flagship products, like Masimo Patient SafetyNet, Masimo Root patient monitoring, Masimo Radius-7 tetherless and wearable Pulse CO-Oximeters.

Moreover, Masimo’s Next Generation SedLine brain function monitoring for pediatric patients received CE Mark. With this approval, the Next Generation SedLine are available for all patients a year old and above in countries which accept the CE Mark.

Product Launches

In recent times, Masimo has launched a number of products like RAS-45, an acoustic respiration sensor for rainbow Acoustic Monitoring (RAM), for treating infant and neonatal patients. Additionally, Masimo announced the launch of Doctella, a home-based patient engagement and remote care automation platform.

Masimo Corporation Price and Consensus

Masimo Corporation Price and Consensus | Masimo Corporation Quote

Which Way Are Estimates Treading?

The Zacks Consensus Estimate for first-quarter earnings per share is pegged at 75 cents. The same for revenues stands at $223.2 million, indicating a 4.8% rise.

The Zacks Consensus Estimate for full-year earnings is at $3.08, showing 1.7% growth from 2018. The same for revenues stands at $912.9 billion, indicating a 6.4% rise.

Bottom Line

Masimo seems to be positioned for growth on a solid view for 2019 and a series of encouraging developments. The company's long-term earnings growth rate of 15.6% supports our view.

Key Picks

Other top-ranked stocks in the broader medical space are Varian Medical VAR, Penumbra PEN, Wright Medical WMGI, each carrying a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Varian Medical's long-term earnings are expected to grow 8%.

Penumbra has a long-term earnings growth rate of 20.9%.

Wright Medical’s long-term earnings growth is projected at 11.3%.

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Masimo Corporation (MASI) : Free Stock Analysis Report
Penumbra, Inc. (PEN) : Free Stock Analysis Report
Varian Medical Systems, Inc. (VAR) : Free Stock Analysis Report
Wright Medical Group N.V. (WMGI) : Free Stock Analysis Report
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