GLOBUS MEDICAL INC - A (NYSE:GMED) – A Strong Growth Stock with Technical Breakout Potential

GLOBUS MEDICAL INC - A (NYSE:GMED) was identified by our screener as a strong growth stock with a favorable technical setup. The company combines solid fundamentals with a potential breakout pattern, making it an interesting candidate for investors looking for growth opportunities.

Fundamental Strengths

• Growth: GMED has shown strong revenue growth of 32.26% over the past year, with earnings per share (EPS) increasing by 23.02%. The company’s five-year EPS growth stands at 13.19%, indicating consistent expansion.
• Profitability: With an operating margin of 17.79%, GMED outperforms 89.30% of its peers in the Health Care Equipment & Supplies industry. Its return on invested capital (ROIC) of 8.24% is also above the industry average.
• Financial Health: The company has a strong balance sheet, with a current ratio of 4.45 and no significant debt, reflected in a Debt/Equity ratio of 0.00.
• Valuation: While the P/E ratio of 18.51 suggests a reasonable valuation compared to industry peers, the forward P/E of 15.36 indicates potential upside if growth continues.

Technical Setup

• Breakout Potential: Despite a weak recent trend, GMED is forming a consolidation pattern near key support levels. A move above resistance at $58.11-$59.18 could signal a reversal.
• Volume & Liquidity: The stock maintains healthy average daily volume, ensuring liquidity for traders.
• Support Levels: Strong support exists around $55.81-$57.31, providing a potential floor for further upside.

For investors seeking growth stocks with technical momentum, GMED presents an intriguing case.

Our Strong Growth Stocks with Good Technical Setup Ratings screener lists more stocks with similar characteristics.
For a deeper dive, review the full fundamental report and technical analysis.

Disclaimer

This is not investment advice. The observations here are based on current data, but investors should conduct their own research before making decisions.