Is Wall Street Underestimating Globus Medical Stock’s Potential?

Here’s why we believe Globus Medical (GMED) stock merits attention as a value stock. It’s currently trading approximately 33% below its 1-year high and is also trading at a PS multiple that falls below the average over the past 3 years. Nonetheless, it possesses sound fundamentals for its level of valuation.

• Reasonable Revenue Growth: 17.4% LTM and 44.7% last 3 year average.
• Cash Generative: Almost 19.9% free cash flow margin and 13.2% operating margin LTM.
• No Major Margin Shocks: Globus Medical has successfully avoided any major margin collapse in the last 12 months.
• Modest Valuation: In spite of encouraging fundamentals, GMED stock is trading at a PE multiple of 23.8.
• Opportunity vs S&P: In comparison to the S&P, you will find a lower valuation, enhanced revenue growth, but reduced margins.

To provide some context, Globus Medical offers healthcare solutions for musculoskeletal disorders and orthopedic trauma treatment, encompassing fracture plates, compression screws, intramedullary nails, and external fixation systems across the globe.

Investing in a single stock can be risky, but there’s significant value in a broader diversified approach. Strategic asset allocation and diversification enable you to remain invested. Were you aware that investors who panicked and exited the S&P in 2020 missed out on substantial gains that followed? Trefis High Quality Portfolio and Empirical Asset Management’s asset allocation strategy are designed to mitigate volatility so you can maintain your investment course.

*LTM: Last Twelve Months

But do these figures tell the complete story? Check Buy or Sell GMED Stock to determine if Globus Medical continues to possess an advantage that withstands scrutiny.

Stocks Like These Can Outperform. Here Is Data

Below are statistics for stocks with the same selection strategy applied between 12/31/2016 and 6/30/2025.

• Average 6-month and 12-month forward returns of 12.7% and 25.8% respectively
• Win rate (percentage of picks returning positive) of > 70% for both 6-month and 12-month periods
• Not overly reliant on market crashes. Even during non-crash periods, this strategy has a 12-month average return of close to 20% with a 67% win rate.

But Consider The Risk

GMED is not immune to significant declines either. It dropped roughly 34% during the 2018 correction, suffered a 41% decline in the Covid pandemic, and fell nearly 48% during the inflation shock. Despite strong fundamentals, these downturns indicate that the stock can be adversely impacted when the market turns. Robust companies still encounter severe sell-offs in tumultuous periods.

However, the risk is not confined to substantial market crashes. Stocks can decline even when markets are favorable – consider events such as earnings reports, business updates, and outlook adjustments. Explore GMED Dip Buyer Analyses to see how the stock has rebounded from sharp declines in the past.

The Trefis High Quality (HQ) Portfolio, which comprises 30 stocks, has a proven history of comfortably outperforming its benchmark, including all three – the S&P 500, S&P mid-cap, and Russell 2000 indices. What’s the reason behind this? As a collective, HQ Portfolio stocks have delivered superior returns with reduced risk compared to the benchmark index; offering a steadier investment experience, as indicated in HQ Portfolio performance metrics.