Is Masimo (MASI) a Solid Growth Stock? 3 Reasons to Think "Yes"

Core Viewpoint - Growth investors are focused on stocks with above-average financial growth, which can lead to solid returns, but finding such stocks is challenging due to inherent volatility and risks [1] Group 1: Growth Stock Identification - The Zacks Growth Style Score system aids in identifying promising growth stocks by analyzing real growth prospects beyond traditional metrics [2] - Masimo (MASI) is currently highlighted as a recommended stock due to its favorable Growth Score and 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 [4] - Masimo's projected EPS growth for this year is 20%, significantly higher than the industry average of 14.2% [5] Group 3: Cash Flow Growth - Higher-than-average cash flow growth is essential for growth-oriented companies, allowing them to expand without relying on external funding [6] - Masimo's year-over-year cash flow growth is currently 13%, compared to an industry average of -0.4% [6] - The company's annualized cash flow growth rate over the past 3-5 years is 10.7%, exceeding the industry average of 6.5% [7] Group 4: Earnings Estimate Revisions - Positive trends in earnings estimate revisions correlate strongly with near-term stock price movements [8] - Recent upward revisions in Masimo's current-year earnings estimates have seen a 0.8% increase in the Zacks Consensus Estimate over the past month [9] Group 5: Overall Positioning - Masimo has achieved a Growth Score of A and a Zacks Rank of 2, indicating strong potential for outperformance based on the discussed metrics [11]