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

Zacks Equity Research

On Jul 15, shares of Masimo Corporation MASI scaled a new 52-week high of $155.13, closing the session a tad lower at $154.43. Impressive top-line performance during the first quarter and an encouraging 2019 outlook fueled the rally.

Masimo has had a great run on the bourses in the past year. The stock has surged 55.4% compared with the broader industry’s rally of 2.8%.

Considering these, one may expect the company to scale new highs in the upcoming quarters. Further, the company has average positive earnings surprise of 6.6% for the trailing four quarters.

Growth Drivers

Recent Regulatory Go-Aheads: Investors are highly optimistic about the prospects of Masimo banking on several recent regulatory clearances. In June, Masimo announced that its O3Regional Oximetry has attained FDA approval for use on neonatal and infant patients. In May, the global major announced FDA 510(k) clearance of Radius PPG, a tetherless sensor solution powered by Masimo SET, which marks a significant milestone in patient monitoring.In April, Masimo announced the CE marking of the Mdoloris Analgesia Nociception Index (ANI) module for the Masimo Root Patient Monitoring and Connectivity Hub, the first commercially available result of a Masimo Open Connect (MOC) third-party partnership, between Mdoloris and Masimo.

Masimo Corporation Price


Masimo Corporation Price

Masimo Corporation price | Masimo Corporation Quote


Expansion of Product Portfolio: Market is upbeat about the commercial launch of the Halo ION, which should help clinicians aggregate trend data from basic physiological parameters like oxygen saturation,  pulse rate and perfusion index.

Strategic Partnerships:  Recently, Masimo and Mindray announced an expanded partnershipunder the terms of which the latter will offer monitoring devices like SET Measure-through Motion and Low Perfusion pulse oximetry — noninvasive, continuous measurement of oxygen saturation,pulse rate and perfusion index. This has also contributed to attainment of the 52-week high.

Positive Study Outcome: Market is also upbeat about several recent positive study results that Masimo released of late. For instance, in July, the company announced outcomes from a new study which investigated the utility of Masimo ORi, oxygen reserve index, as an indicator to avoid hyperoxia during general anesthesia.

Zacks Rank and Key Picks

Masimo currently carries a Zacks Rank # 3 (Hold).

A few better-ranked stocks in the broader medical space are Teleflex Inc. TFX, Penumbra PEN and NuVasive Corporation NUVA. While Teleflex currently carries a Zacks Rank #2 (Buy), the other two have a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Teleflex’s long-term earnings growth rate is expected at 13.7%.

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

NuVasive’s long-term earnings growth rate is expected to be 11.9%.

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