Globus Medical(GMED) ZACKS·2024-11-29 18:46Core 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]