NYSE:GMED: a strong growth stock preparing for the next leg up?.

Groth investors are looking for stocks showing high revenue and EPS growth. We will have a look here to see if GLOBUS MEDICAL INC - A (NYSE:GMED) is suited for growth investing, while it is forming a base and may be ready to breakout. Investors should of course do their own research, but we spotted GLOBUS MEDICAL INC - A showing up in our growth with base formation screen, so it may be worth spending some more time on it.

Assessing Growth Metrics for NYSE:GMED

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NYSE:GMED has received a 8 out of 10:

• The Earnings Per Share has grown by an nice 17.77% over the past year.
• Measured over the past years, GMED shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.42% on average per year.
• The Revenue has grown by 22.84% in the past year. This is a very strong growth!
• The Revenue has been growing by 9.97% on average over the past years. This is quite good.
• GMED is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.77% yearly.
• GMED is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 23.57% yearly.
• When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
• The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

Unpacking NYSE:GMED's Health Rating

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NYSE:GMED scores a 7 out of 10:

• An Altman-Z score of 4.38 indicates that GMED is not in any danger for bankruptcy at the moment.
• With a decent Altman-Z score value of 4.38, GMED is doing good in the industry, outperforming 78.22% of the companies in the same industry.
• The Debt to FCF ratio of GMED is 3.18, which is a good value as it means it would take GMED, 3.18 years of fcf income to pay off all of its debts.
• GMED has a better Debt to FCF ratio (3.18) than 89.11% of its industry peers.
• GMED has a Debt/Equity ratio of 0.10. This is a healthy value indicating a solid balance between debt and equity.
• A Current Ratio of 4.47 indicates that GMED has no problem at all paying its short term obligations.
• GMED has a Quick Ratio of 2.36. This indicates that GMED is financially healthy and has no problem in meeting its short term obligations.

Exploring NYSE:GMED's Profitability

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NYSE:GMED, the assigned 8 is a significant indicator of profitability:

• GMED has a better Return On Assets (2.95%) than 78.22% of its industry peers.
• With a decent Return On Equity value of 3.77%, GMED is doing good in the industry, outperforming 75.25% of the companies in the same industry.
• The Return On Invested Capital of GMED (3.88%) is better than 76.73% of its industry peers.
• The last Return On Invested Capital (3.88%) for GMED is well below the 3 year average (8.17%), which needs to be investigated, but indicates that GMED had better years and this may not be a problem.
• GMED's Profit Margin of 12.87% is amongst the best of the industry. GMED outperforms 91.09% of its industry peers.
• GMED's Profit Margin has improved in the last couple of years.
• GMED has a Operating Margin of 19.38%. This is amongst the best in the industry. GMED outperforms 93.07% of its industry peers.
• GMED has a better Gross Margin (71.19%) than 82.67% of its industry peers.

Looking at the Setup

ChartMill also assign a Setup Rating to every stock. With this score it is determined to what extend the stock has been trading in a range in the recent days and weeks. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. NYSE:GMED scores a 7 out of 10:

Although the technical rating is bad, GMED does present a nice setup opportunity. Prices have been consolidating lately and the volatility has been reduced. We notice that large players showed an interest for GMED in the last couple of days, which is a good sign.

More Strong Growth stocks can be found in our Strong Growth screener.

Check the latest full fundamental report of GMED for a complete fundamental analysis.

For an up to date full technical analysis you can check the technical report of GMED

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.