Masimo Corporation MASI recently announced the full U.S. market release of the Stork smart home baby monitoring system. The Stork Vitals+, Vitals, and Camera combinations are now available for purchase online and on shelves at major retailers and specialty retailers.
However, Masimo Stork is not being sold as a medical device and, per Masimo, should not be used for medical purposes.
The latest U.S. market release of Masimo’s home baby monitoring system is expected to significantly strengthen its remote baby monitoring business across the nation.
Significance of the Launch
The Stork smart home baby monitor, representing a significant advancement in smart baby monitoring technology, is expected to provide parents and caregivers with a continuous and accurate view of babies' health data. Stork leverages Masimo’s non-invasive hospital neonate monitoring technologies and will likely offer a range of innovative features, including the Masimo Stork app’s user-friendly interface.
Per management, the launch of the Masimo Stork smart home baby monitoring system is expected to provide parents access to a technology with a user interface that is a simple and easy-to-use app on the phone. The technology was originally developed for the most challenging patients in hospitals.
Industry Prospects
Per a report by Future Market Insights, the global smart baby monitor market was estimated at $1.14 billion in 2022 and is anticipated to exceed $2.46 billion by the end of 2032 at a CAGR of 8%. Factors like the growing emphasis on child safety and security, the rise in the number of working families and the increasing adoption of smart home technologies are expected to drive the market.
Given the market potential, the adoption of its smart baby monitor is likely to provide a significant boost to Masimo’s business.
Recent Developments
This month, Masimo announced the findings of a prospective, randomized study in which researchers assessed the use of non-invasive, continuous Masimo pleth variability index, as part of goal-directed fluid therapy, to guide intraoperative fluid administration during gastrointestinal surgery on elderly patients by comparing it to conventional fluid therapy. The findings were published in Perioperative Medicine.
The same month, Masimo reported its second-quarter 2023 results, wherein it registered an expansion of its installed base. Management confirmed that the company gained new hospital customers during the quarter at a record level. The expansion of both margins in the quarter was also recorded.
Also, in August, Masimo announced the findings of a study in which researchers evaluated the ability of Masimo SedLine brain function monitoring to assess the sedation levels of patients undergoing drug-induced sleep endoscopy with dexmedetomidine (a sedative with numerous advantages). The findings were published in Frontiers in Neuroscience.
Price Performance
Shares of Masimo have lost 29.8% in the past year compared with the industry’s 3.9% decline. The S&P 500 has witnessed 5.9% growth in the said time frame.
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Zacks Rank & Stocks to Consider
Currently, Masimo carries a Zacks Rank #5 (Strong Sell).
Some better-ranked stocks in the broader medical space are Patterson Companies, Inc. PDCO, HealthEquity, Inc. HQY and McKesson Corporation MCK.
Patterson Companies, carrying a Zacks Rank #2 (Buy) at present, has an estimated long-term growth rate of 9.2%. PDCO’s earnings surpassed estimates in three of the trailing four quarters and missed once, with an average surprise of 4.5%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Patterson Companies has gained 15.5% compared with the industry’s 11% rise over the past year.
HealthEquity, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 22%. HQY’s earnings surpassed estimates in three of the trailing four quarters and missed once, with an average of 9.1%.
HealthEquity has gained 6.8% against the industry’s 16.1% decline over the past year.
McKesson, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 10.7%. MCK’s earnings surpassed estimates in three of the trailing four quarters and missed once, the average surprise being 8.1%.
McKesson has gained 14.8% compared with the industry’s 11% rise over the past year.
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