Company Overview - Globus Medical (GMED) is currently trading approximately 33% below its 1-year high and has a price-to-sales (PS) multiple that is below the average of the past 3 years, indicating potential value [2] - The company specializes in healthcare solutions for musculoskeletal disorders and orthopedic trauma treatment, offering products such as fracture plates, compression screws, intramedullary nails, and external fixation systems globally [3] Financial Performance - The company has demonstrated reasonable revenue growth, with a last twelve months (LTM) growth rate of 17.4% and a 3-year average growth rate of 44.7% [6] - GMED has a free cash flow margin of almost 19.9% and an operating margin of 13.2% for the LTM, showcasing its cash-generative capabilities [6] - The stock is trading at a price-to-earnings (PE) multiple of 23.8, which is considered modest given its encouraging fundamentals [6] Market Comparison - Compared to the S&P 500, GMED shows a lower valuation, enhanced revenue growth, but reduced margins, suggesting a competitive position in the market [6] - The average forward returns for GMED are 12.7% over 6 months and 25.8% over 12 months, with a win rate of over 70% for both periods [7] Historical Volatility - The stock has experienced significant declines in the past, including a 34% drop during the 2018 correction, a 41% decline during the Covid pandemic, and a nearly 48% fall during the inflation shock, indicating susceptibility to market downturns [8] - Despite strong fundamentals, the stock can be adversely impacted during tumultuous periods, highlighting the importance of market conditions in stock performance [8]