Down 9.8%: Is Masimo Corporation Stock a Contrarian Buy?

Masimo Corporation (NASDAQ: MASI), a mid-cap medical technology company, reported stronger-than-expected second-quarter results after the bell Wednesday, but investors still decided to hit the exits en mass Thursday. Specifically, the company's shares fell by 9.8% yesterday on nearly three times the average volume.

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The really perplexing part of this downward move is that Masimo's management even boosted the company's annual revenue guidance by $10 million to $769 million during its second-quarter earnings release. Moreover, Masimo doesn't sport any major red flags -- such as unsightly debt levels or weakening product sales -- to easily explain this overtly negative reaction to the company's exceptionally strong second-quarter earnings report.

Source: Fool.com