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Here's Why You Should Invest in Masimo (MASI) Right Now

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Masimo CorporationMASI is currently one of the top-performing stocks in the MedTech space. An upbeat guidance for 2018 and a string of developments currently favor the stock.

Shares Up

Shares of Masimo have rallied 41.7% against the industry 's 7.4% decline in a year's time. The current level is also lower than the S&P 500 index's increase of 16.4%.

The stock currently has a Zacks Rank #2 (Buy).

What Makes Masimo an Attractive Pick?

Guidance Raised

Masimo recently saw a solid second quarter of 2018. Buoyed by the results, the company raised its 2018 earnings and revenue guidance.

Revenues are expected at $850 million, up from the previous guidance of $846 million. Notably, this reflects growth of 10.8% at constant currency. Product revenues are projected at $822 million, up from the previously projected $818 million. The company has retained the guidance for the Royalty and Other segment.

Adjusted earnings per share are expected at $2.90, up from the earlier estimated figure of $2.88.

Other Developments

Masimo has been lately witnessing a slew of developments.

Recently, the California-based MedTech company announced FDA clearance of RAS-45, an acoustic respiration sensor for Rainbow Acoustic Monitoring for infant and neonatal patients.

Last month, Masimo announced that its SET Measure-through Motion and Low Perfusion pulse oximetry can successfully identify children with Down Syndrome. (Read More: Masimo's SET Pulse Oximetry Detects Sleep Apnea in Children )

Which Way Are Estimates Treading?

For the current quarter, the Zacks Consensus Estimate for earnings is pegged at 68 cents. The same for revenues stands at $206.3 million, reflecting year-over-year growth of 6.5%.

Masimo Corporation Price and Consensus

Masimo Corporation Price and Consensus | Masimo Corporation Quote

For the current year, the Zacks Consensus Estimate for earnings is pinned at $2.90, showing growth of 18.4% from the previous year. The same for revenues is pegged at $850.2 million, indicating a rise of 6.5% from the previous year.

Other Key Picks

Other top-ranked stocks in the broader medical space are athenahealth ATHN , Intuitive Surgical ISRG and Veeva Systems VEEV .

athenahealth has a long-term expected earnings growth rate of 17.6%. The stock sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.

Intuitive Surgical's expected long-term earnings growth rate is 14.7%. The stock has a Zacks Rank #1.

Veeva Systems' long-term earnings growth rate is projected at 19.3%. The stock carries a Zacks Rank #1.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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