Masimo (MASI) is an Incredible Growth Stock: 3 Reasons Why

Core Viewpoint - Growth stocks are appealing due to their potential for above-average financial growth, but identifying strong candidates is challenging due to inherent risks and volatility [1] Group 1: Growth Stock Identification - The Zacks Growth Style Score aids in identifying promising growth stocks by analyzing real growth prospects beyond traditional metrics [2] - Masimo (MASI) is currently highlighted as a recommended growth stock, possessing a favorable Growth Score and a top Zacks Rank [2] Group 2: Earnings Growth - Earnings growth is a critical factor for growth investors, with double-digit growth seen as a strong indicator of future stock price gains [3] - Masimo's projected EPS growth for this year is 20%, significantly higher than the industry average of 12.6% [4] Group 3: Cash Flow Growth - High cash flow growth is essential for growth-oriented companies, allowing them to fund new projects without relying on external financing [5] - Masimo's year-over-year cash flow growth stands at 13%, compared to an industry average of -0.2% [5] - The company's annualized cash flow growth rate over the past 3-5 years is 10.7%, exceeding the industry average of 6.5% [6] Group 4: Earnings Estimate Revisions - Positive trends in earnings estimate revisions correlate strongly with stock price movements [7] - Masimo has experienced upward revisions in current-year earnings estimates, with a 4.2% increase in the Zacks Consensus Estimate over the past month [7] Group 5: Overall Assessment - Masimo's combination of a Zacks Rank 1 and a Growth Score of A positions it as a potential outperformer and a solid choice for growth investors [9]