Masimo RAS-45 Full-Market Release To Boost Respiratory Care

Masimo Corporation (NASDAQ:MASI) recently 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.

Notably, RAM is a flagship noninvasive technology of Masimo that continuously measures respiration rate of the prospective patients using an adhesive sensor and an acoustic transducer.

RAS-45 exclusively operates for post-surgical patients undergoing patient-controlled analgesia (self-administered pain management). Here we note that RAS-45 and RAS 125-c are two notable adhesive sensors in RAM.

As per management, the RAS-45 go-ahead highlights the exclusivity of the product, which includes smaller adhesive profile, usage of transparent adhesive and flexibility compared with the likes that are available in the market. The product is also likely to empower the company’s flagship signal extraction (SET), rainbow and the MX technologies.

Considering bountiful opportunities for Advanced Monitoring Technologies in the global market, the launch instills investors’ confidence in the stock. A research report by Markets And Markets reveals that niche market is expected to reach a worth of $15.01 billion globally by 2022, at a CAGR of 8.5%.

Additionally, Masimo’s long-term growth fundamentals are strong. The Irvine, CA-based company recorded a five-year CAGR of 8.5% for revenues and 9.1% for adjusted earnings per share. Masimo has particularly witnessed an improvement in earnings over the last three years.

Masimo develops, manufactures and markets a family of non-invasive monitoring systems. The latest development would significantly fortify the company’s position in niche markets.

Masimo carries a Zacks Rank #2 (Buy). Year to date, Masimo has outperformed the industry in terms of price. The company has returned 28.4%, compared with the sub-industry’s increase of 18.4%. Also, the current return is higher than the S&P 500’s gain of 12.6% over the same time frame.

Other Key Picks

A few other top-ranked stocks in the broader medical sector are SONOVA HOLDING (OTC:SONVY) , IDEXX Laboratories, Inc. (NASDAQ:IDXX) and Cogentix Medical, Inc. (NASDAQ:CGNT) . All the companies hold a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

SONOVA yeilded a solid return of 28.9% over a year. The company has a long-term expected earnings growth rate of 7%.

IDEXX Laboratories has an average earnings beat of 9.3% over the trailing four quarters. It has a long-term expected earnings growth rate of 19.8%.

Cogentix Medical came up with a positive earnings surprise of 200% in the last quarter. The stock represented a stellar return of 100.9% in the last year.

Today's Stocks from Zacks' Hottest Strategies

It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.

And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.

See Them Free>>