Back to top

Image: Bigstock

Globus Medical Gains From International Spine Arm, Innovation

Read MoreHide Full Article

On Jan 15, 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 carries a Zacks Rank #3 (Hold).

Over the past three months, shares of Globus Medical have outperformed the industry. The stock has rallied 14.5% compared with the industry’s 3.7% rise.

During the third quarter, Musculoskeletal Solutions performed exceptionally well on a consistent basis. Within this, the U.S. Spine business captured a plum market share, driven by competitive representative recruiting and an implant pull-through from ExcelsiusGPS.

The company is expected to have exited 2019 with competitive representative recruiting for the third consecutive year. Internationally, spine business was up 15% in the third quarter, ahead of the market level across almost all significant geographies. Enabling Technologies also registered strong growth on the increasing adoption of ExcelsiusGPS platform.

A raised sales outlook for 2019 is indicative of this bullish trend to have sustained through the remaining year.

On the flip side, concerns about the pricing scenario persist as it will be affected by the cost-containment efforts of governmental healthcare, local hospitals and health systems. For the full year, pricing pressure is expected in the range of a negative 2% to 0.

Key Picks

Some better-ranked stocks from the broader medical space are Haemonetics Corporation (HAE - Free Report) , Hill-Rom Holdings, Inc. (HRC - Free Report) and Medtronic plc (MDT - Free Report) .

Haemonetics has a Zacks Rank #1 (Strong Buy) and a projected long-term earnings growth rate of 13.5%. You can see the complete list of today’s Zacks #1 Rank stocks here.

Hill-Rom’s long-term earnings growth rate is estimated at 11.7%. The company presently carries a Zacks Rank #2 (Buy).

Medtronic’s long-term earnings growth rate is projected at 7.4%. It currently carries a Zacks Rank of 2.

Free: Zacks’ Single Best Stock Set to Double

Today you are invited to download our latest Special Report that reveals 5 stocks with the most potential to gain +100% or more in 2020. From those 5, Zacks Director of Research, Sheraz Mian hand-picks one to have the most explosive upside of all.

This pioneering tech ticker had soared to all-time highs and then subsided to a price that is irresistible. Now a pending acquisition could super-charge the company’s drive past competitors in the development of true Artificial Intelligence. The earlier you get in to this stock, the greater your potential gain.

See 5 Stocks Set to Double>>