Globus Medical Inc. (GMED) Stock Behavior Isn’t As Predictable As You Think

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Globus Medical Inc. (NYSE:GMED) at last check was buoying at $65.84 on Thursday, April 28, with a fall of -0.72% from its closing price on previous day.

Taking a look at stock we notice that its last check on previous day was $66.32 and 5Y monthly beta was reading 1.10 with its price kept floating in the range of $65.945 and $67.93 on the day. Company’s P/E ratio for the trailing 12 months is 46.02. Considering stock’s 52-week price range provides that GMED hit a high price of $84.23 and saw its price falling to a low level of $62.39 during that period. Over a period of past 1-month, stock came subtracting -9.49% in its value.

With its current market valuation of $8.00 billion, Globus Medical Inc. is set to declare its quarterly results on May 10, 2022. Analysts are in estimates of $0.47 per share for company’s earnings in the current quarter and are expecting its annual EPS growth moving up to $2.1 for 2022 with estimates of that growing to $2.4 in next year. These estimates are suggesting current year growth of 2.90% for EPS and 14.30% growth next year.

Analysts watching the company’s growth closely have provided estimates for its revenue growth with an average revenue estimate of $235.01 million. They suggested that in the process company could generate revenue of as low as $230.47 million which could climb up to $245.5 million to hit a high. The average estimate is representing an increase of 3.40% in sales growth from that of posted by the company in the same quarter of last year. In keeping analyst consensus estimate with, company is forecasted to be making an annual revenue of $1.03 billion in 2022, which will be 7.30% more from revenue generated by the company last year.

In last 7 days, analysts came adjusting their opinions about stock’s EPS with no upward and no downward revisions, an indication which could give clearer idea about the company’s short term price movement. In contrast, when we review GMED stock’s current outlook then short term indicators are assigning it an average of 50% Buy, while medium term indicators are categorizing the stock at an average of 50% Sell. Long term indicators are suggesting an average of 100% Sell for it.

Digging deeper we become aware of the PEG ratio of the GMED stock which is currently positioned at 2.14. It further provides that stock’s current price level is -11.96% away from its 20-day simple moving average and is -7.86% off its SMA50. Its relative strength index (RSI) for 14-periods is oscillating at 36.21 while volatility remained at 3.53% over the past week which changes to 2.53% when measuring it over the past month. Beta is valued at 1.07, while measure of average true range or ATR is currently at 2.47.

In comparing Globus Medical Inc. (GMED)’s stock with other industry players reveals that stock’s latest price change of -0.72% and that of -7.56% over the past 12 months is in competing position with that of NuVasive Inc. (NUVA) which saw its stock price fall by -1.53% in the recent trading and went through a decrease of -25.44% in past 12-month trading. Industry’s another major player Zimmer Biomet Holdings Inc. (ZBH) has rise 0.02% up in latest trading session, but over the past year has faced afall of -29.04%, while Stryker Corporation (SYK) was also down -0.66% however its price remained floating in the red at -4.02% over the same period. Globus Medical Inc. has a P/E ratio of 46.02 while Zimmer Biomet Holdings Inc. is showing 60.00 for the same. On the other hand, the S&P 500 Index is up 0.84% in the early deals today while the Dow Jones Industrial was dealinghigher at 0.43%.

Having a second look at Globus Medical Inc. (NYSE:GMED) provides that stock’s average daily trading volume for 3 months was 735.25K. Number of outstanding shares of the stock stood at 101.50 million.

The percentage of outstanding shares held by the insiders is 0.60% while it is 70.40% for the institutional holders. Subtraction of -8.14% by stock’s current price to its year-to-date value in today’s trading is likely to be increasing investors’ interest in the stock as it is hinting an extended uptrend.