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Globus Medical Sees Strong Rebound Despite Coronavirus Crisis
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On Aug 19, we issued an updated research report on Globus Medical, Inc. (GMED - Free Report) . The company continues to witness higher demand for its Musculoskeletal Solutions products. Meanwhile, it is expanding its footprint in the overseas markets by consolidating direct and distributors’ sales force. The stock currently sports a Zacks Rank #1 (Strong Buy).
Over the past three months, shares of Globus Medical have outperformed the industry. The stock has gained 6.9% compared with 3.8% growth of the industry.
Globus Medical’s second-quarter 2020 results were better than expected despite pandemic-led business disruptions. Although segmental sales were disappointing in the quarter, improvement in the company’s U.S. revenues led by the U.S. spine business was encouraging. The continued momentum of robotic technology and strong uptake of the company’s HEDRON line of 3D printed inner body spacers buoy optimism. We are upbeat about the company’s stupendous investments in its R&D wing. Globus Medical launched several products in its spine portfolio, which instill investors’ confidence in the stock.
The coronavirus pandemic has wreaked havoc on Globus Medical’s business. The business bottomed in mid-April. However, since then there has been a visible rebound in the company’s revenue trend that continued through the remainder of the quarter. April revenues were down by roughly two-thirds. There was a notable improvement in May with just 25% sales decline. June witnessed double-digit growth from the year-ago period.
Growth in July accelerated to the mid-teens even as certain areas began restricting elective surgery again. This growth, according to the company, came on a number of factors including product launches, competitive recruiting and robotic pull through. The spine division has launched six products in 2020 so far. The company has seen tremendous uptake in HEDRON line of 3D printed inner body spacers and its fourth generation expandable MIS TLIF device. Given its encouraging adoption, Globus Medical is currently doubling its 3D manufacturing capacity, which should come online in the fourth quarter.
On the flip side, dismal segmental and international performance of Globus Medical is concerning. Contraction of gross margin and the operating loss incurred in the quarter are discouraging. The company’s decision to not provide any financial guidance raises apprehensions. Also, concerns about the pricing scenario persist as it will be affected by the cost-containment efforts of governmental healthcare, local hospitals and health systems.
Other Key Picks
A few other top-ranked stocks from the broader medical space are Hologic, Inc. (HOLX - Free Report) , Thermo Fisher Scientific Inc. (TMO - Free Report) and QIAGEN N.V. (QGEN - Free Report) .
Thermo Fisher’s long-term expected earnings growth rate is estimated at 15%. It currently carries a Zacks Rank #2 (Buy).
QIAGEN’s long-term expected earnings growth rate is estimated at 22.3%. The company presently carries a Zacks Rank #1.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
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Globus Medical Sees Strong Rebound Despite Coronavirus Crisis
On Aug 19, we issued an updated research report on Globus Medical, Inc. (GMED - Free Report) . The company continues to witness higher demand for its Musculoskeletal Solutions products. Meanwhile, it is expanding its footprint in the overseas markets by consolidating direct and distributors’ sales force. The stock currently sports a Zacks Rank #1 (Strong Buy).
Over the past three months, shares of Globus Medical have outperformed the industry. The stock has gained 6.9% compared with 3.8% growth of the industry.
Globus Medical’s second-quarter 2020 results were better than expected despite pandemic-led business disruptions. Although segmental sales were disappointing in the quarter, improvement in the company’s U.S. revenues led by the U.S. spine business was encouraging. The continued momentum of robotic technology and strong uptake of the company’s HEDRON line of 3D printed inner body spacers buoy optimism. We are upbeat about the company’s stupendous investments in its R&D wing. Globus Medical launched several products in its spine portfolio, which instill investors’ confidence in the stock.
Globus Medical, Inc. Price
Globus Medical, Inc. price | Globus Medical, Inc. Quote
The coronavirus pandemic has wreaked havoc on Globus Medical’s business. The business bottomed in mid-April. However, since then there has been a visible rebound in the company’s revenue trend that continued through the remainder of the quarter. April revenues were down by roughly two-thirds. There was a notable improvement in May with just 25% sales decline. June witnessed double-digit growth from the year-ago period.
Growth in July accelerated to the mid-teens even as certain areas began restricting elective surgery again. This growth, according to the company, came on a number of factors including product launches, competitive recruiting and robotic pull through. The spine division has launched six products in 2020 so far. The company has seen tremendous uptake in HEDRON line of 3D printed inner body spacers and its fourth generation expandable MIS TLIF device. Given its encouraging adoption, Globus Medical is currently doubling its 3D manufacturing capacity, which should come online in the fourth quarter.
On the flip side, dismal segmental and international performance of Globus Medical is concerning. Contraction of gross margin and the operating loss incurred in the quarter are discouraging. The company’s decision to not provide any financial guidance raises apprehensions. Also, concerns about the pricing scenario persist as it will be affected by the cost-containment efforts of governmental healthcare, local hospitals and health systems.
Other Key Picks
A few other top-ranked stocks from the broader medical space are Hologic, Inc. (HOLX - Free Report) , Thermo Fisher Scientific Inc. (TMO - Free Report) and QIAGEN N.V. (QGEN - Free Report) .
Hologic’s long-term expected earnings growth rate is estimated at 15.5%. It currently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Thermo Fisher’s long-term expected earnings growth rate is estimated at 15%. It currently carries a Zacks Rank #2 (Buy).
QIAGEN’s long-term expected earnings growth rate is estimated at 22.3%. The company presently carries a Zacks Rank #1.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>