Market Rebound Sparks Optimism: Globus Medical Takes Center Stage
The market’s recent sell-off has given way to a promising rebound, and Globus Medical (GMED) is leading the charge. This medical device stock has caught the attention of investors, boasting a newly formed flat base and exhibiting bullish behavior.
A Leader in Medical Implants
Globus Medical specializes in creating medical implants, including plates, screws, and anchors for spine surgeries, as well as biologic products for stem cell treatment and bone grafts. Its strong performance has earned it the top spot among 126 stocks in the Medical-Products group, which ranks 70th out of 197 groups tracked by Investor’s Business Daily.
Technical Analysis Points to Upside
Globus Medical stock has retaken its 21-day exponential moving average, a promising sign for investors. The company’s shares are up over 1% in light volume, with a 87.22 buy point marking its all-time high. Although volume has been mostly below average within the base, the stock is finding support at the 10-week moving average, a constructive indicator.
Institutional Buying and Strong Earnings
Globus Medical’s Accumulation/Distribution Rating of B+ suggests heavy institutional buying over the last 13 weeks. Its 1.5 Up/Down Volume Ratio indicates positive demand over the past 50 days. The company’s third-quarter earnings growth surged 46%, beating estimates, and it raised its full-year 2024 profit and revenue outlook.
Growth Prospects and Analyst Expectations
Globus Medical expects 2024 revenue to reach $2.49 billion to $2.50 billion. While revenue growth is expected to slow to 3% to 7% over the next four quarters, analysts anticipate 28% profit growth for 2024 and 15% in 2025. The company is set to report fourth-quarter results in mid-February.
Strong Earnings Stability and Composite Rating
Globus Medical boasts a score of 11 out of 99 on the IBD Earnings Stability factor, indicating stable earnings over the last three years. Its 95 Earnings Per Share Rating and 97 Composite Rating further underscore its strength.
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