ZACKSยท2025-09-26 00:21Core Insights - Collegium Pharmaceutical (COLL) and Masimo Corporation (MASI) are highlighted as strong buy stocks due to rising earnings estimate revisions and their respective market positions in the medical sector [1][2]. Collegium Pharmaceutical (COLL) - Collegium is recognized as an undervalued specialty pharmaceutical company focusing on central nervous system, respiratory, and skin-related disorders [1]. - The company is projected to achieve a 20% increase in revenue and a 9% increase in earnings this year, with low-single digit growth expected for fiscal 2026 [3]. - Collegium's stock is trading at a forward earnings multiple of 5X and a sales multiple of less than 2X, significantly below the S&P 500 averages and the Zacks Medical-Drugs Industry average of 15.5X forward earnings and 3.4X forward sales [4]. - EPS projections for Collegium have risen to over $7 per share, distinguishing it from over 130 smaller-cap pharmaceutical companies that are currently unprofitable [5]. Masimo Corporation (MASI) - Masimo is noted for its non-invasive health monitoring systems, which provide real-time insights into patient physiology [2]. - The company is expected to see a 20% increase in annual earnings for FY25, reaching $5.30 per share, up from $4.40 last year, with a further 7% increase projected for FY26 [7]. - Masimo's stock trades at a forward earnings multiple of 26.5X, slightly above the Zacks Medical-Instruments Industry average of 23.5X, indicating a justified premium due to its growth prospects [7]. Market Context - Both Collegium and Masimo have experienced significant EPS revisions over the last 60 days, making them attractive options for growth and value in a market characterized by high volatility [9].