We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Here's Why You Should Buy Globus Medical (GMED) Stock Now
Read MoreHide Full Article
Globus Medical, Inc. (GMED - Free Report) is gaining from strategically expanding its global presence to address the unmet demand for musculoskeletal devices. This business reports gains across expandables, biologics, MIS screws, 3D-printed implants, and cervical offerings. However, several macroeconomic issues are adversely affecting the company’s profit margins. A significant FX headwind is another downside.
In the past year, this Zacks Rank #2 (Buy) stock has declined 18.4% compared with the 2.9% fall of the industry and a 13.3% increase of the S&P 500 composite.
The renowned medical device company has a market capitalization of $7.08 billion. Globus Medical projects a long-term estimated earnings growth rate of 11.5% compared with 15.5% of the industry.
Let’s delve deeper.
Upsides
Musculoskeletal Prospects Strong: Globus Medical is gaining market share in the musculoskeletal solutions space, banking on the solid performance of implantable devices, biologics, accessories, and unique surgical instruments used in an expansive range of spinal, orthopedic and neurosurgical procedures.
The company is particularly seeing notable gains across its product portfolio in expandables, biologics, MIS screws, 3D printed implants, and cervical offerings. In the past few quarters, this business has registered above-market growth driven by competitive rep recruiting from prior quarters and robotic pull-through. In the second quarter of 2023, Globus Medical launched three new products — REFLECT, MARVEL and Ossifuse.
Prominent Trend Improvement: Since the beginning of 2023, continued market share gain within the U.S. Spine, higher sales of Enabling Technologies' robotic systems, new sales related to the rollout of the Excelsius3D imaging system, and continued growth within its trauma business contributed to this growth. Enabling Technology sales were up 54.5% during the first six months of 2023, driven by robotic and imaging system sales. The company expects increased interest in sales with significant international gains of ExcelsiusGPS in EMEA and Asia Pacific, leading to future implant pull-through and substantial market share gains.
Industry Prospects Impressive: Per Transparency Market Research, with a substantial increase in the prevalence of musculoskeletal disorders across the world, the global musculoskeletal diseases market has been witnessing a tremendous rise in size and valuation.
Image Source: Zacks Investment Research
A report by Industry ARC states that the Global Musculoskeletal Diseases market will witness a CAGR of almost 5.5% and post a modest revenue of $79.4 billion by 2023. Needless to add, these trends are expected to generate higher demand for Globus Medical’s core products.
Downsides
Macroeconomic Concerns Curb Profit: Like other industry players, Globus Medical is currently grappled by negative trends in the global economy, including interest rate fluctuations, increases in inflation and financial market volatility. These factors are adversely affecting the company’s operations and financial performance. The global inflation, in particular, has led to a significant rise in the cost of raw materials for the company. In the second quarter, the company incurred an 11.7% rise in the cost of goods sold.
Exposure to Currency Movement: Globus Medical records 14.8% of its sales from the international market. A significant portion of the company’s foreign revenues and expenses is generated in Japan, the Euro zone, the U.K. and Australia. This makes it highly vulnerable to currency fluctuations. For 2022, the company reported a foreign currency transaction loss of $1.02 million.
Estimate Trend
The Zacks Consensus Estimate for 2023 earnings per share (EPS) has been constant at $2.31 in the past 30 days.
The Zacks Consensus Estimate for the company’s 2023 revenues is pegged at $1.13 billion. This suggests a 10.2% rise from the year-ago reported number.
Key Picks
Some other top-ranked stocks in the broader medical space are DaVita Inc. (DVA - Free Report) , Quanterix (QTRX - Free Report) and Align Technology (ALGN - Free Report) , each carrying a Zacks Rank #2 (Buy).
DaVita has gained 25.5% against the industry’s 8.9% decline over the past year.
Estimates for Quanterix’s 2023 loss per share have remained constant at 97 cents in the past 30 days. Shares of the company have surged 141.5% in the past year compared with the industry’s fall of 5.6%.
QTRX’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 30.39%. In the last reported quarter, it posted an earnings surprise of 55.56%.
Estimates for Align Technology’s 2023 earnings have moved up from $8.77 to $8.78 per share in the past 30 days. Shares of the company have increased 27% in the past year compared with the industry’s rise of 14.3%.
ALGN’s earnings beat estimates in three of the trailing four quarters and missed in one. In the last reported quarter, it posted an earnings surprise of 9.90%.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Shutterstock
Here's Why You Should Buy Globus Medical (GMED) Stock Now
Globus Medical, Inc. (GMED - Free Report) is gaining from strategically expanding its global presence to address the unmet demand for musculoskeletal devices. This business reports gains across expandables, biologics, MIS screws, 3D-printed implants, and cervical offerings. However, several macroeconomic issues are adversely affecting the company’s profit margins. A significant FX headwind is another downside.
In the past year, this Zacks Rank #2 (Buy) stock has declined 18.4% compared with the 2.9% fall of the industry and a 13.3% increase of the S&P 500 composite.
The renowned medical device company has a market capitalization of $7.08 billion. Globus Medical projects a long-term estimated earnings growth rate of 11.5% compared with 15.5% of the industry.
Let’s delve deeper.
Upsides
Musculoskeletal Prospects Strong: Globus Medical is gaining market share in the musculoskeletal solutions space, banking on the solid performance of implantable devices, biologics, accessories, and unique surgical instruments used in an expansive range of spinal, orthopedic and neurosurgical procedures.
The company is particularly seeing notable gains across its product portfolio in expandables, biologics, MIS screws, 3D printed implants, and cervical offerings. In the past few quarters, this business has registered above-market growth driven by competitive rep recruiting from prior quarters and robotic pull-through. In the second quarter of 2023, Globus Medical launched three new products — REFLECT, MARVEL and Ossifuse.
Prominent Trend Improvement: Since the beginning of 2023, continued market share gain within the U.S. Spine, higher sales of Enabling Technologies' robotic systems, new sales related to the rollout of the Excelsius3D imaging system, and continued growth within its trauma business contributed to this growth. Enabling Technology sales were up 54.5% during the first six months of 2023, driven by robotic and imaging system sales. The company expects increased interest in sales with significant international gains of ExcelsiusGPS in EMEA and Asia Pacific, leading to future implant pull-through and substantial market share gains.
Industry Prospects Impressive: Per Transparency Market Research, with a substantial increase in the prevalence of musculoskeletal disorders across the world, the global musculoskeletal diseases market has been witnessing a tremendous rise in size and valuation.
Image Source: Zacks Investment Research
A report by Industry ARC states that the Global Musculoskeletal Diseases market will witness a CAGR of almost 5.5% and post a modest revenue of $79.4 billion by 2023. Needless to add, these trends are expected to generate higher demand for Globus Medical’s core products.
Downsides
Macroeconomic Concerns Curb Profit: Like other industry players, Globus Medical is currently grappled by negative trends in the global economy, including interest rate fluctuations, increases in inflation and financial market volatility. These factors are adversely affecting the company’s operations and financial performance. The global inflation, in particular, has led to a significant rise in the cost of raw materials for the company. In the second quarter, the company incurred an 11.7% rise in the cost of goods sold.
Exposure to Currency Movement: Globus Medical records 14.8% of its sales from the international market. A significant portion of the company’s foreign revenues and expenses is generated in Japan, the Euro zone, the U.K. and Australia. This makes it highly vulnerable to currency fluctuations. For 2022, the company reported a foreign currency transaction loss of $1.02 million.
Estimate Trend
The Zacks Consensus Estimate for 2023 earnings per share (EPS) has been constant at $2.31 in the past 30 days.
The Zacks Consensus Estimate for the company’s 2023 revenues is pegged at $1.13 billion. This suggests a 10.2% rise from the year-ago reported number.
Key Picks
Some other top-ranked stocks in the broader medical space are DaVita Inc. (DVA - Free Report) , Quanterix (QTRX - Free Report) and Align Technology (ALGN - Free Report) , each carrying a Zacks Rank #2 (Buy).
DaVita has an estimated long-term growth rate of 12.7%. DVA’s earnings surpassed estimates in three of the trailing four quarters and missed once, with an average surprise of 21.4%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
DaVita has gained 25.5% against the industry’s 8.9% decline over the past year.
Estimates for Quanterix’s 2023 loss per share have remained constant at 97 cents in the past 30 days. Shares of the company have surged 141.5% in the past year compared with the industry’s fall of 5.6%.
QTRX’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 30.39%. In the last reported quarter, it posted an earnings surprise of 55.56%.
Estimates for Align Technology’s 2023 earnings have moved up from $8.77 to $8.78 per share in the past 30 days. Shares of the company have increased 27% in the past year compared with the industry’s rise of 14.3%.
ALGN’s earnings beat estimates in three of the trailing four quarters and missed in one. In the last reported quarter, it posted an earnings surprise of 9.90%.