Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.

Trade-Ideas LLC identified

Masimo

(

MASI

) as a strong and under the radar candidate. In addition to specific proprietary factors, Trade-Ideas identified Masimo as such a stock due to the following factors:

  • MASI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $19.2 million.
  • MASI has traded 45.17909999999999826059138285927474498748779296875 options contracts today.
  • MASI is making at least a new 3-day high.
  • MASI has a PE ratio of 32.
  • MASI is mentioned 1.55 times per day on StockTwits.
  • MASI has not yet been mentioned on StockTwits today.
  • MASI is currently in the upper 20% of its 1-year range.
  • MASI is in the upper 35% of its 20-day range.
  • MASI is in the upper 45% of its 5-day range.
  • MASI is currently trading above yesterday's high.

'Strong and Under the Radar' stocks tend to be worthwhile stocks to watch for a variety of factors including historical back testing and price action. Market technicians refer to such stocks as being in an accumulation phase before a mark-up and peak. Traders and hedge funds have frequently found that these types of stocks continue to build a solid price base and then ultimately spike higher and peak when others 'discover' how good the stock is performing. By leveraging the social discovery aspect of StockTwits we are highlighting stocks that don't currently receive much attention from retail investors, but we suspect may soon garner more attention.

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More details on MASI:

Masimo Corporation, a medical technology company, develops, manufactures, and markets noninvasive monitoring technologies worldwide. MASI has a PE ratio of 32. Currently there are 3 analysts that rate Masimo a buy, 1 analyst rates it a sell, and 3 rate it a hold.

The average volume for Masimo has been 353,800 shares per day over the past 30 days. Masimo has a market cap of $2.1 billion and is part of the health care sector and health services industry. The stock has a beta of 0.22 and a short float of 5.2% with 4.40 days to cover. Shares are up 55.3% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Masimo as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, solid stock price performance and expanding profit margins. We feel its strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:

  • MASI's revenue growth trails the industry average of 26.3%. Since the same quarter one year prior, revenues rose by 10.5%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • The current debt-to-equity ratio, 0.39, is low and is below the industry average, implying that there has been successful management of debt levels. To add to this, MASI has a quick ratio of 1.80, which demonstrates the ability of the company to cover short-term liquidity needs.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Health Care Equipment & Supplies industry and the overall market, MASIMO CORP's return on equity exceeds that of both the industry average and the S&P 500.
  • Compared to its closing price of one year ago, MASI's share price has jumped by 72.06%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, although almost any stock can fall in a broad market decline, MASI should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • The gross profit margin for MASIMO CORP is rather high; currently it is at 68.00%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 13.28% is above that of the industry average.

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