Masimo (MASI) Soars 3.3%: Is Further Upside Left in the Stock?
Masimo (MASI) shares soared 3.3% in the last trading session to close at $139.43. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 2.1% gain over the past four weeks.
The company's plan to spin-off its consumer business is likely to be the key factor for the surge in share prices. Investors cheered the news as the spin-off may improve Masimo's business performance going forward.
This medical technology company is expected to post quarterly earnings of $0.71 per share in its upcoming report, which represents a year-over-year change of -18.4%. Revenues are expected to be $488.18 million, down 13.6% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Masimo, the consensus EPS estimate for the quarter has been revised 4.3% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on MASI going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Masimo is part of the Zacks Medical - Instruments industry. PROCEPT BioRobotics Corporation (PRCT), another stock in the same industry, closed the last trading session 1.4% lower at $47.01. PRCT has returned -2.4% in the past month.
PROCEPT BioRobotics' consensus EPS estimate for the upcoming report has changed -4.3% over the past month to -$0.55. Compared to the company's year-ago EPS, this represents a change of +12.7%. PROCEPT BioRobotics currently boasts a Zacks Rank of #3 (Hold).
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Masimo Corporation (MASI) : Free Stock Analysis Report
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