Core Viewpoint - Globus Medical is experiencing growth in demand for its Musculoskeletal Solutions products, but faces challenges from a difficult macroeconomic environment [1] Factors Driving GMED's Shares - The company is gaining market share in musculoskeletal solutions, driven by strong performance in implantable devices, biologics, accessories, and surgical instruments [2] - Notable growth is observed in expandables, biologics, minimally invasive screws, 3D printed implants, and cervical offerings [2] - In Q3, pro forma musculoskeletal revenues increased by 5.4%, marking the fourth consecutive quarter of growth, primarily from U.S. and international spine businesses [3] - Enabling Technologies revenues grew by 39% year over year, fueled by increased sales in the U.S. market [3] Product Launches - Four new products were launched in Q3, including the Excelsius Navigation Hub, which offers unique imaging workflows [4] - The Actify 3D Total Knee system was introduced, enhancing operative efficiency and anatomical fit [5] - The CAPTIVATE SOLA headless compression screw system was launched for various orthopedic applications [5] Merger and Synergies - The merger with NuVasive has created a global musculoskeletal company focused on innovation and addressing clinical needs [6] - The combined entity expects to generate $170 million in synergies over three years, with 40% realized in the first year [7] Business Performance - The combined trauma and NSO business reported a 99% growth in Q3, driven by strong market penetration [8] - Over the past three months, GMED shares increased by 24.3%, outperforming the industry average of 0.2% [9] Challenges Faced - The company is affected by negative global economic trends, including interest rate fluctuations and inflation, impacting operations and financial performance [10] - A significant 99.8% increase in the cost of goods sold was reported in Q3, alongside a 54.1% rise in SG&A expenses [11] - The musculoskeletal devices market is highly competitive, necessitating continuous product innovation to maintain market share [12]

Core Insights - Globus Medical, Inc. reported preliminary unaudited sales results for Q4 and full year 2024, expecting Q4 sales of approximately $657.0 million, a 6.6% increase from Q4 2023, and full year sales of about $2.52 billion, reflecting a 60.6% increase year-over-year [1][2] Group 1: Financial Performance - The company anticipates Q4 2024 sales of around $657.0 million, marking a 6.6% increase compared to Q4 2023 [1] - Full year 2024 sales are projected to be approximately $2.52 billion, which is a 60.6% increase over the previous year [1] - For 2025, the company has established revenue guidance in the range of $2.66 billion to $2.69 billion, with fully diluted non-GAAP earnings per share expected between $3.40 to $3.50 [2] Group 2: Strategic Initiatives - The merger with NuVasive is highlighted as a key factor in creating a strong sales force and product offering in the spine industry, enhancing the company's innovative capabilities [2] - The company achieved a record number of new product launches and the highest placements of Enabling Technology to date during the first full year post-merger [2] - The focus remains on product innovation, superior customer service, and operational excellence to advance patient care and drive shareholder value [2] Group 3: Future Outlook - 2025 is anticipated to be a significant year for product launches across the company's portfolio, positioning Globus Medical for sustained growth in the musculoskeletal market [2] - The company aims to build upon the successes of 2024 to further solidify its foundation for accelerated growth [2]

Core Viewpoint - Globus Medical, Inc. (GMED) is experiencing growth driven by strong prospects in the musculoskeletal space, with a merger with NuVasive expected to create significant synergies and a solid liquidity position, although competition poses operational challenges [1][9]. Group 1: Financial Performance - GMED's shares have increased by 54.9% over the past year, outperforming the industry growth of 4.2% and the S&P 500's 25.6% gain [2]. - The company has a market capitalization of $11.23 billion and an earnings yield of 3.6%, significantly higher than the industry's -4.6% yield [2]. - GMED's earnings have exceeded estimates in the last four quarters, with an average surprise of 17.65% [2]. - Estimates for GMED's 2024 earnings per share (EPS) have increased by 0.7% to $2.97, with 2024 revenue estimates at $2.50 billion, indicating a 59.2% increase from the previous year [11]. Group 2: Business Growth Drivers - The company is gaining market share in the musculoskeletal solutions sector, particularly in implantable devices, biologics, and surgical instruments for spinal, orthopedic, and neurosurgical procedures [4]. - Proforma musculoskeletal revenues grew by 5.4% in the third quarter, primarily due to strong performance in the U.S. and international spine businesses [5]. - Revenues from Enabling Technologies increased by 39% year over year, driven by sales growth in the U.S. market [5]. - The combined trauma and NSO business saw a 99% growth in the third quarter, reflecting strong market penetration and performance [7]. Group 3: Strategic Initiatives - The merger with NuVasive aims to create a global musculoskeletal company focused on innovation and addressing unmet clinical needs [6]. - The company is working to develop best-in-class technologies to enhance its procedural solutions [6]. Group 4: Financial Health - GMED ended the third quarter of 2024 with $695 million in cash and cash equivalents, with short-term debt of $437 million, indicating a strong liquidity position [8]. - The absence of long-term debt on the balance sheet is favorable, especially amid global manufacturing and supply disruptions [8].

Core Viewpoint - Investors are seeking growth stocks that can deliver above-average growth and exceptional returns, but identifying such stocks can be challenging due to inherent volatility and risks [1] Group 1: Growth Stock Identification - The Zacks Growth Style Score system aids in identifying promising growth stocks by analyzing real growth prospects beyond traditional metrics [2] - Globus Medical (GMED) is highlighted as a recommended stock with a favorable Growth Score and a top Zacks Rank [2] Group 2: Earnings Growth - Earnings growth is crucial for investors, with double-digit growth being highly desirable as it indicates strong future prospects [4] - Globus Medical has a historical EPS growth rate of 14.2%, but projected EPS growth for this year is expected to be 28.4%, significantly surpassing the industry average of 16.5% [5] Group 3: Cash Flow Growth - Higher-than-average cash flow growth is essential for growth-oriented companies, allowing them to expand without relying on external funding [6] - Globus Medical's year-over-year cash flow growth is 72.4%, well above the industry average of -4.9% [6] - The company's annualized cash flow growth rate over the past 3-5 years is 18.2%, compared to the industry average of 5.4% [7] Group 4: Earnings Estimate Revisions - Positive trends in earnings estimate revisions correlate strongly with near-term stock price movements [8] - There have been upward revisions in current-year earnings estimates for Globus Medical, with the Zacks Consensus Estimate increasing by 4.7% over the past month [9] Group 5: Overall Assessment - Globus Medical has achieved a Zacks Rank of 2 and a Growth Score of B, indicating its potential as a solid choice for growth investors [10]

Core Viewpoint - The comparison between Globus Medical (GMED) and Penumbra (PEN) indicates that GMED presents a better value opportunity for investors at this time due to its more favorable valuation metrics [1]. Valuation Metrics - GMED has a forward P/E ratio of 28.64, while PEN has a significantly higher forward P/E of 87.03 [5]. - The PEG ratio for GMED is 2.03, compared to PEN's PEG ratio of 2.46, suggesting GMED is more reasonably priced relative to its expected earnings growth [5]. - GMED's P/B ratio stands at 2.85, whereas PEN's P/B ratio is much higher at 8.49, indicating that GMED is trading closer to its book value [6]. Earnings Outlook - Both GMED and PEN currently hold a Zacks Rank of 2 (Buy), reflecting an improving earnings outlook supported by positive analyst estimate revisions [3]. - Despite both companies having solid earnings prospects, GMED's valuation metrics suggest it is the superior value option at present [7].

Core Viewpoint - Globus Medical, Inc. has launched the ExcelsiusHub navigation system, enhancing spine navigation safety and efficiency, which is expected to positively influence market sentiment towards GMED stock in the near future [1][4]. Company Developments - The ExcelsiusHub is a significant addition to the Enabling Technologies product category, designed to improve intraoperative navigation for spinal surgeries [2][4]. - The company reported a record number of Excelsius units placed in Q3 2024, indicating strong adoption of its existing technologies [4]. - GMED's market capitalization stands at $11.54 billion, with an average earnings surprise of 17.65% over the last four quarters [5]. Product Features - ExcelsiusHub offers real-time patient array monitoring, tissue-sparing drills, and flexible registration, aimed at reducing reliance on X-ray imaging during surgeries [1][6]. - The system supports various procedures, from minimally invasive to complex spinal surgeries, enhancing operational efficiency and patient safety [8][7]. - It features multiple workflows, including automatic registration with Excelsius3D and intraoperative 2D navigation, providing a comprehensive solution for surgical procedures [7][6]. Market Outlook - The surgical navigation systems market is projected to grow by $2.46 billion by 2030, with a compound annual growth rate of 10.09% from 2022 to 2030, driven by the demand for robot-assisted surgeries and minimally invasive procedures [9]. - GMED's share price has increased by 83.9% over the past year, significantly outperforming the industry average growth of 14.8% [11].

AUDUBON, Pa., Nov. 22, 2024 (GLOBE NEWSWIRE) -- Globus Medical, Inc. (NYSE: GMED), a leading musculoskeletal solutions company, today announced the commercial launch of the ExcelsiusHub™ navigation system. ExcelsiusHub™ joins the expansive ecosystem of Excelsius™ technologies and is designed to elevate the standard for freehand navigation. Freehand navigation provides surgeons with real-time visualization of instrument placement, to reduce the reliance on X-ray imaging during spine surgery. This also facil ...

Core Insights - Zacks Premium provides various tools for investors to enhance their stock market engagement and confidence [1] - The Zacks Style Scores are designed to complement the Zacks Rank, helping investors identify stocks with the potential to outperform the market in the short term [3][4] Zacks Style Scores - The Style Scores categorize stocks into four types: Value Score, Growth Score, Momentum Score, and VGM Score, each focusing on different investment strategies [4][5][6] - Value Score identifies undervalued stocks using financial ratios like P/E and Price/Sales [4] - Growth Score assesses stocks based on projected earnings and sales growth [5] - Momentum Score evaluates stocks based on price trends and earnings estimate changes [5] - VGM Score combines all three styles to highlight stocks with the best overall characteristics [6] Zacks Rank - The Zacks Rank is a proprietary model that uses earnings estimate revisions to guide investors in stock selection [7] - Stocks rated 1 (Strong Buy) have historically achieved an average annual return of +25.41%, significantly outperforming the S&P 500 [8] - A total of over 800 stocks are rated 1 or 2, making it essential for investors to utilize Style Scores to refine their choices [9] Stock Highlight: Globus Medical (GMED) - Globus Medical, Inc. is a medical device company focused on solutions for musculoskeletal disorders, operating in 51 countries [11] - GMED holds a 2 (Buy) rating on the Zacks Rank and has a VGM Score of A, indicating strong potential [11] - The stock has shown a 9.7% increase over the past four weeks, supported by upward revisions in earnings estimates for fiscal 2024 [12] - The Zacks Consensus Estimate for GMED has risen by $0.11 to $2.95 per share, with an average earnings surprise of 17.7% [12]

Core Viewpoint - Investors are increasingly seeking growth stocks that demonstrate above-average growth potential, with Globus Medical identified as a strong candidate due to its favorable growth metrics and Zacks Rank [1][2]. Earnings Growth - Globus Medical has a historical EPS growth rate of 14.2%, with projected EPS growth of 27.3% for the current year, significantly surpassing the industry average of 17.1% [5]. Cash Flow Growth - The company exhibits a year-over-year cash flow growth of 72.4%, which is notably higher than the industry average of -4.9%. The historical annualized cash flow growth rate over the past 3-5 years stands at 18.2%, compared to the industry average of 5.4% [6][7]. Earnings Estimate Revisions - There has been a positive trend in earnings estimate revisions for Globus Medical, with the Zacks Consensus Estimate for the current year increasing by 4.6% over the past month, contributing to its Zacks Rank of 2 [9]. Investment Positioning - The combination of strong earnings growth, impressive cash flow growth, and favorable earnings estimate revisions positions Globus Medical well for potential outperformance, making it an attractive option for growth investors [10].

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