Medical DevicePowered Growth

If you’re in the market for a promising little-known company in which to invest and you can stomach some risk, take a look at Masimo (Nasdaq: MASI), a medical device maker specializing in noninvasive patient monitoring technologies.

While the company sells an array of products, its bread-and-butter business is pulse oximeters. They’re used to track oxygen levels in the blood, which is critical information for health care providers to have when they are dealing with patients in need of acute care.

Masimo’s pulse oximeters are widely used, and found in 17 of the top 20 hospitals on the U.S. News and World Report Best Hospitals Honor Roll. With 1.5 million devices in use worldwide, customers can be counted on to reorder supplies on a regular basis. This helps makes Masimo’s financial statements highly predictable.

Masimo seems poised for further growth in part due to opportunities abroad, in developing countries. It is also looking at adjacent market opportunities, such as sleep disorder treatment and telehealth, that could benefit from its algorithm expertise and sensor technologies.

Free-cash-flow positive and with rising revenue, Masimo is worth a closer look for patient investors. There’s no dividend, as is common with smaller or fast-growing companies, but Masino has been buying back many shares, boosting the value of remaining ones.