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Masimo's (MASI) Platform Expansion to Boost Patient Monitoring

Masimo Corporation MASI recently announced the global expansion of the HEOS platform, an iconic brand within its non-healthcare premium and luxury consumer audio business. The expansion enables an always-on connection to the Masimo Health secure cloud for 4 million devices, thus empowering consumers with an enhanced health-tracking experience.

The software upgrade allows Masimo’s devices and secure cloud solution to seamlessly integrate with HEOS-enabled sound bars and wireless speakers, among others, from Denon, Marantz and Definitive Technology worldwide. This includes the United States, Canada, the UK, Japan and Australia, with more countries going live later in 2023.

The latest expansion is a major stepping stone for Masimo’s real-time patient monitoring business and is likely to solidify its position in the niche space on a global scale.

Significance of the Expansion

Masimo’s HEOS ecosystem platform, combined with Masimo's wearable health and wellness devices (including the Masimo W1 advanced health tracking watch and, soon, the Stork baby monitor), will likely allow users to keep track of their health and wellness. It will also share their data with their families and clinicians, thus enhancing telehealth innovation and cohesive care.

Per management, the new capabilities of the HEOS platform are expected to empower individuals to embrace self-care as an essential part of life, thereby transforming their lives with innovative technology and personalized insights. Management also believes that the expanded capabilities of the HEOS platform with Masimo’s wearables will likely provide its customers with health tracking, which is integrated with their audio solutions.

Industry Prospects

Per a report by Allied Market Research, the global patient monitoring devices market was estimated to be $25,768.56 million in 2019 and is anticipated to reach $44,861.56 million by 2027 at a CAGR of 4.4%. Factors like technological advancements and a growing preference for telehealth services are expected to drive the market.

Given the market potential, the latest expansion is likely to provide a significant boost to Masimo’s business globally.

Recent Developments

This month, Masimo reported its first-quarter 2023 results, wherein it registered a robust uptick in the top line and its healthcare business. The company also recorded robust order shipments during the reported quarter. The expansion of the company’s installed base was also witnessed.

The same month, Masimo announced that Cambridge University Hospitals NHS Foundation Trust, U.K. adopted the Masimo W1 advanced health tracking watch for use in its telehealth and telemedicine programs.

Again, in May, Masimo announced the launch of Stork, an innovative home baby-monitoring system.

Price Performance

Shares of Masimo have gained 13.8% in the past year compared with the industry’s 0.1% rise and the S&P 500's 2% growth.

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Zacks Rank & Other Key Picks

Currently, Masimo carries a Zacks Rank #2 (Buy).

A few other top-ranked stocks in the broader medical space are Hologic, Inc. HOLX, Merit Medical Systems, Inc. MMSI and Boston Scientific Corporation BSX.

Hologic, carrying a Zacks Rank #2 at present, has an estimated growth rate of 5.1% for fiscal 2024. HOLX’s earnings surpassed estimates in all the trailing four quarters, the average being 27.3%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Hologic has gained 4.5% compared with the industry’s 0.1% rise in the past year.

Merit Medical, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 11%. MMSI’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 20.2%.

Merit Medical has gained 32.4% compared with the industry’s 4.8% rise over the past year.

Boston Scientific, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 11.5%. BSX’s earnings surpassed estimates in two of the trailing four quarters and missed in the other two, the average surprise being 1.9%.

Boston Scientific has gained 29.4% against the industry’s 31.8% decline over the past year.

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