What’s Next For Masimo Stock After A 14% Rise In 10 Days?

by Trefis Team
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The stock price of Masimo Corporation (NASDAQ:MASI), a medical devices company best known for its remote patient monitoring systems, has seen a rise of 9.4% in last twenty-one trading days, while it is up 14% over the last ten days. The company yesterday announced the U.S. FDA approval for its Radius T wearable wireless thermometer for continuous monitoring of body temperature. The thermometer is cleared for both prescription and over-the-counter (OTC) use. But what led the growth in the stock over the recent days was positive findings from a study aimed at assessing the benefits of Oxygen Reserve Index (ORi). The data indicated that ORi-guided thoracic anesthesia may reduce length of stay at hospital and it also increases the safety of patients. ORi has so far not been cleared by the U.S. FDA and the recent positive findings bode well for Masimo, which provides patient monitoring solutions.

However, now that MASI stock has seen a rise of 9.4% in twenty-one trading days, will it continue its upward trajectory, or is a fall imminent? Going by historical performance, there is a solid chance of a rise in MASI stock over the next month. Out of 432 instances in the last ten years that Masimo stock saw a twenty-one day rise of 9.4% or more, 293 of them resulted in MASI stock rising over the subsequent one month period (twenty-one trading days). This historical pattern reflects 293 out of 432, or about 68% chance of a rise in MASI stock over the coming month. Also, despite the recent rally, MASI stock is up only 4% from the levels it was trading at a year ago. See our analysis on Masimo Stock Chances of Rise for more details.

Calculation of ‘Event Probability‘ and ‘Chance of Rise‘ using last ten year data

  1. After moving 6.2% or more over a five-day period, the stock rose in the next 5 days on 60% of the occasions.
  2. After moving 14% or more over a ten-day period, the stock rose in the next 10 days on 69% of the occasions
  3. After moving 9.4% or more over a twenty-one-day period, the stock rose in the next 21 days on 68% of the occasions

Predict average return on Masimo (MASI) Stock Return: AI Predicts MASI Average and Excess Return After a Fall or Rise

Masimo (MASI) Stock Return (Recent) Comparison With Peers

  • Five-Day Return: MASI highest at 6.2%; SPY lowest at -0.3%
  • Ten-Day Return: MASI highest at 14%; SPY lowest at 0.2%
  • Twenty-One Day Return: DXCM highest at 25%; MDT lowest at -0.4%

While MASI stock may see higher levels, 2020 has created many pricing discontinuities which can offer attractive trading opportunities. For example, you’ll be surprised how counter-intuitive the stock valuation is for Merck vs. Regeneron

See all Trefis Price Estimates and Download Trefis Data here

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