Here's Why Masimo (MASI) Shows Powerful Upward Momentum

Maximizing Your Stock Market Potential with Zacks Premium

Whether you're just starting out or have years of experience, making the most of your investments and trading with assurance are shared ambitions. Zacks Premium offers a variety of tools and resources to help you achieve these objectives.

Subscribers gain access to daily updates on the Zacks Rank and Industry Rank, the exclusive Zacks #1 Rank List, comprehensive equity research, and advanced stock screening features. These resources are designed to empower you to make smarter, more confident investment decisions.

Additionally, Zacks Premium members can utilize the Zacks Style Scores for deeper analysis.

Understanding Zacks Style Scores

The Zacks Style Scores were created to complement the Zacks Rank, offering investors a way to evaluate stocks using three popular investment strategies. These scores help identify stocks with the highest likelihood of outperforming the market in the coming month.

Each stock receives a letter grade—A, B, C, D, or F—based on its value, growth, and momentum characteristics. An 'A' rating signals the strongest potential, followed by 'B', and so on, making it easier to spot stocks with the best prospects.

The Style Scores are divided into four main categories:

Value Score

Value investors seek quality companies trading below their intrinsic worth. The Value Score considers metrics such as price-to-earnings, PEG, price-to-sales, and price-to-cash-flow ratios, among others, to highlight stocks that are attractively priced or undervalued.

Growth Score

Growth-focused investors prioritize a company's financial health and future outlook. The Growth Score evaluates both historical and projected earnings, sales, and cash flow to uncover businesses poised for sustainable expansion.

Momentum Score

Momentum investing is based on the principle that trends tend to persist. This score analyzes factors like recent price changes and shifts in earnings estimates to pinpoint stocks experiencing strong upward or downward momentum, helping investors time their entries more effectively.

VGM Score

For those who want a comprehensive approach, the VGM Score combines value, growth, and momentum ratings into a single measure. This score is especially useful when used alongside the Zacks Rank, as it highlights companies excelling across all three investment styles.

How Style Scores Enhance the Zacks Rank

The Zacks Rank is a proprietary system that leverages changes in earnings estimates to help investors build winning portfolios.

Historically, stocks rated #1 (Strong Buy) have delivered an average annual return of +23.86% since 1988—more than twice the S&P 500's performance. However, with over 200 Strong Buy stocks and an additional 600 rated #2 (Buy) at any given time, narrowing down your choices can be daunting.

This is where the Style Scores become invaluable.

To maximize your investment returns, focus on stocks with a Zacks Rank of #1 or #2 and Style Scores of A or B. If considering stocks with a #3 (Hold) rating, prioritize those with high Style Scores to maintain strong upside potential.

Always pay attention to the direction of earnings estimate revisions, as the Style Scores are designed to work in tandem with the Zacks Rank.

For example, a stock rated #4 (Sell) or #5 (Strong Sell), even with high Style Scores, is likely facing declining earnings forecasts and may be at greater risk of price drops.

Owning more stocks with top Zacks Ranks and high Style Scores increases your chances of success.

Featured Stock: Masimo (MASI)

Masimo Corporation, based in Irvine, California, specializes in non-invasive monitoring technologies. The company operates in two segments: Healthcare, which contributed 66.6% of fiscal 2024 revenue (a 9.4% increase from the previous year), and Non-healthcare, accounting for 33.4% (a 9.5% decrease).

Currently, MASI holds a #2 (Buy) rating on the Zacks Rank and boasts a VGM Score of B.

This medical stock is particularly appealing to momentum investors. MASI has earned a Momentum Style Score of B, and its shares have climbed 27.1% over the past month.

In the last two months, two analysts have raised their earnings forecasts for fiscal 2025, pushing the Zacks Consensus Estimate up by $0.05 to $5.53 per share. The company has also delivered an average earnings surprise of +12.4%.

With a strong Zacks Rank and high Momentum and VGM Scores, MASI stands out as a compelling option for investors.

Top Analyst's "Best Pick to Double"

Among thousands of stocks, five Zacks experts each selected their top choice for the potential to double in value in the coming months. From these, Director of Research Sheraz Mian identified one company with the greatest upside potential.

This business targets millennial and Gen Z consumers, generating nearly $1 billion in revenue last quarter. A recent dip in its share price may present a timely opportunity. While not every recommendation is a winner, this pick could outperform previous standouts like Nano-X Imaging, which surged over 129% in just nine months.