NYSE:GMED qualifies as a high growth stock and is consolidating.

For growth-minded investors, high revenue and EPS growth are key criteria. Today, we'll examine whether GLOBUS MEDICAL INC - A (NYSE:GMED) fits the bill for growth investing, particularly as it forms a base and hints at a potential breakout. Remember, due diligence is essential, but GLOBUS MEDICAL INC - A has caught our attention on our screen for growth with base formation. It may warrant additional investigation.

Assessing Growth Metrics for NYSE:GMED

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NYSE:GMED boasts a 8 out of 10:

• GMED shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 17.77%, which is quite good.
• Measured over the past years, GMED shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.42% on average per year.
• GMED shows a strong growth in Revenue. In the last year, the Revenue has grown by 22.86%.
• The Revenue has been growing by 9.97% on average over the past years. This is quite good.
• GMED is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 17.47% yearly.
• Based on estimates for the next years, GMED will show a very strong growth in Revenue. The Revenue will grow by 24.28% on average per year.
• When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
• The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

Understanding NYSE:GMED's Health

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NYSE:GMED was assigned a score of 7 for health:

• An Altman-Z score of 4.85 indicates that GMED is not in any danger for bankruptcy at the moment.
• GMED's Altman-Z score of 4.85 is fine compared to the rest of the industry. GMED outperforms 76.00% of its industry peers.
• GMED has a debt to FCF ratio of 3.18. This is a good value and a sign of high solvency as GMED would need 3.18 years to pay back of all of its debts.
• The Debt to FCF ratio of GMED (3.18) is better than 89.00% of its industry peers.
• A Debt/Equity ratio of 0.10 indicates that GMED is not too dependend on debt financing.
• A Current Ratio of 4.47 indicates that GMED has no problem at all paying its short term obligations.
• GMED has a Current ratio of 4.47. This is in the better half of the industry: GMED outperforms 63.50% of its industry peers.
• GMED has a Quick Ratio of 2.36. This indicates that GMED is financially healthy and has no problem in meeting its short term obligations.

Understanding NYSE:GMED's Profitability

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NYSE:GMED was assigned a score of 8 for profitability:

• GMED has a better Return On Assets (2.95%) than 78.00% of its industry peers.
• GMED's Return On Equity of 3.77% is fine compared to the rest of the industry. GMED outperforms 75.00% of its industry peers.
• With a decent Return On Invested Capital value of 3.88%, GMED is doing good in the industry, outperforming 77.00% of the companies in the same industry.
• The 3 year average ROIC (8.17%) for GMED is well above the current ROIC(3.88%). The reason for the recent decline needs to be investigated.
• GMED's Profit Margin of 12.88% is amongst the best of the industry. GMED outperforms 91.50% of its industry peers.
• GMED's Profit Margin has improved in the last couple of years.
• With an excellent Operating Margin value of 19.38%, GMED belongs to the best of the industry, outperforming 93.00% of the companies in the same industry.
• GMED has a better Gross Margin (71.19%) than 82.00% of its industry peers.

Looking at the Setup

Alongside the Technical Rating, ChartMill assigns a Setup Rating to evaluate the consolidation level of a stock. This rating, ranging from 0 to 10, is updated daily and considers various short-term technical indicators. The current setup rating for NYSE:GMED is 8:

GMED has only a medium technical rating, but it does show a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. There is a resistance zone just above the current price starting at 53.68. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 53.50, a Stop Loss order could be placed below this zone. Another positive sign is the recent Pocket Pivot signal.

More Strong Growth stocks can be found in our Strong Growth screener.

For an up to date full fundamental analysis you can check the fundamental report of GMED

Our latest full technical report of GMED contains the most current technical analsysis.

Keep in mind

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.