Globus Medical-Reasons to Add GMED Stock to Your Portfolio Right Now

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].