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Masimo Corporation (NASDAQ:MASI) has rallied 40.3% over the last year, ahead of the S&P 500’s 17.7% gain and the broader industry’s 22.2% rise. The stock has a market cap of $4.53 billion.The company’s five-year historical growth rate is also favorable at 14.4% as compared with 2.8% of the S&P 500 index and 9% of the broader industry.
The company’s current-year earnings growth is projected to be 43.4%, higher than 16.2% for the broader industry and 22.7% for the S&P 500.
With solid prospects, this Zacks Rank #2 (Buy) stock is an attractive pick at present.
Let’s find out whether the recent positive trend is a sustainable one.
The company’s estimate revision trend for the current year has been positive. In the past 30 days, five analysts moved north, with no movement in the opposite direction. Earnings estimates rose around 5.4% to $2.95 per share. The company also has a stellar average return of 13.2% for the last four quarters.
Masimo exited the third quarter on a solid note. Earnings increased 1.9% year over year and revenues rose almost 15.6%. The third quarter’s solid cash flow buoys optimism. Also, the company’s raised revenue guidance for 2017 is encouraging.
Masimo recently announced the release of its proprietary patient data visualization and reporting software, Trace, in the United States. It is specifically designed for Masimo Root and Radical-7 monitors.
Also, Masimo announced the full-market release of RAS-45, a single use adhesive respiration sensor for rainbow acoustic monitoring (RAM) of respiration rate. The launch is expected to strengthen the company’s foothold in the growing global respiratory care market.
Other Key Picks
Other top-ranked medical stocks are PetMed Express, Inc. (NASDAQ:PETS) , Align Technology, Inc. (NASDAQ:ALGN) and Myriad Genetics, Inc. (NASDAQ:MYGN) . Notably, PetMed, Align Technology and Myriad Genetics sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
PetMed has a long-term expected earnings growth rate of 10%. The stock has rallied roughly 79.4% in a year’s time.
Align Technology has a long-term expected earnings growth rate of 28.9%. The stock has gained 164.5% over a year.
Myriad Genetics has a long-term expected earnings growth rate of 15%. The stock has gained 88.3% in a year.
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