Strength Seen in Masimo (MASI): Can Its 34.2% Jump Turn into More Strength?

Masimo (MASI) shares soared 34.2% in the last trading session to close at $174.69. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 8.4% loss over the past four weeks.

The sharp rise in MASI shares can be attributed to the company’s announcement that it has entered into a definitive agreement to be acquired by Danaher Corporation in an all-cash transaction valued at $180 per share, implying a total equity value of approximately $9.9 billion. Although the transaction remains subject to regulatory approvals and other customary closing conditions, with completion expected in the second half of 2026, the clarity on valuation and strategic exit has driven strong buying interest in MASI shares.

This medical technology company is expected to post quarterly earnings of $1.43 per share in its upcoming report, which represents a year-over-year change of -20.6%. Revenues are expected to be $409.06 million, down 31.9% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For Masimo, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on MASI going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Masimo is part of the Zacks Medical - Instruments industry. UFP Technologies (UFPT), another stock in the same industry, closed the last trading session 0.1% higher at $246.13. UFPT has returned -5.7% in the past month.

For UFP, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $2.26. This represents a change of -8.1% from what the company reported a year ago. UFP currently has a Zacks Rank of #3 (Hold).

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This article originally published on Zacks Investment Research (zacks.com).

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