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Why NYSE:GMED Is a Standout High-Growth Stock in a Consolidation Phase.

By Mill Chart

Last update: Jan 30, 2024

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.

Growth Analysis for NYSE:GMED

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NYSE:GMED scores a 8 out of 10:

  • The Earnings Per Share has grown by an nice 17.77% over the past year.
  • The Earnings Per Share has been growing by 9.42% on average over the past years. This is quite good.
  • The Revenue has grown by 22.86% in the past year. This is a very strong growth!
  • GMED shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.97% yearly.
  • 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.
  • The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
  • 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 Score

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NYSE:GMED, the assigned 7 reflects its health status:

  • An Altman-Z score of 4.92 indicates that GMED is not in any danger for bankruptcy at the moment.
  • GMED has a better Altman-Z score (4.92) than 76.26% 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.
  • GMED has a Debt to FCF ratio of 3.18. This is amongst the best in the industry. GMED outperforms 88.89% of its industry peers.
  • GMED has a Debt/Equity ratio of 0.10. This is a healthy value indicating a solid balance between debt and equity.
  • A Current Ratio of 4.47 indicates that GMED has no problem at all paying its short term obligations.
  • Looking at the Current ratio, with a value of 4.47, GMED is in the better half of the industry, outperforming 62.63% of the companies in the same industry.
  • 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.

A Closer Look at Profitability for NYSE:GMED

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NYSE:GMED, the assigned 8 is noteworthy for profitability:

  • The Return On Assets of GMED (2.95%) is better than 77.78% of its industry peers.
  • With a decent Return On Equity value of 3.77%, GMED is doing good in the industry, outperforming 74.75% of the companies in the same industry.
  • GMED has a better Return On Invested Capital (3.88%) than 76.77% of its industry peers.
  • The last Return On Invested Capital (3.88%) for GMED is well below the 3 year average (8.17%), which needs to be investigated, but indicates that GMED had better years and this may not be a problem.
  • Looking at the Profit Margin, with a value of 12.88%, GMED belongs to the top of the industry, outperforming 91.41% of the companies in the same industry.
  • In the last couple of years the Profit Margin of GMED has grown nicely.
  • GMED has a Operating Margin of 19.38%. This is amongst the best in the industry. GMED outperforms 92.93% of its industry peers.
  • GMED has a better Gross Margin (71.19%) than 82.32% 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:

Besides having an excellent technical rating, GMED also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. A pullback is taking place, which may present a nice opportunity for an entry. There is a resistance zone just above the current price starting at 56.25. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 54.38, a Stop Loss order could be placed below this zone.

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

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

Disclaimer

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.

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GLOBUS MEDICAL INC - A

NYSE:GMED (5/17/2024, 7:04:00 PM)

After market: 64.4 0 (0%)

64.4

+0.45 (+0.7%)

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