Here's Why Globus Medical (GMED) is a Strong Value Stock

Zacks Equity Research
·2-min read

Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike.

Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum.

Why Investors Should Pay Attention to This Value Stock

Value investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, and Price/Cash Flow, the Value Style Score identifies the most attractive and most discounted stocks.

Globus Medical (GMED)

Audubon, PA-based Globus Medical, Inc. is a medical device company that develops and commercializes healthcare solutions for patients with musculoskeletal disorders. The company currently has its sales operations distributed across 51 counties worldwide.

GMED sits at a Zacks Rank #2 (Buy), holds a Value Style Score of B, and has a VGM Score of B. Compared to the Medical - Instruments industry's P/E of 24.3X, shares of Globus Medical are trading at a forward P/E of 24.3X. GMED also has a PEG Ratio of 1.9, a Price/Cash Flow ratio of 18.9X, and a Price/Sales ratio of 4.9X.

Value investors don't just pay attention to a company's valuation ratios; positive earnings play a crucial role, too. Three analysts revised their earnings estimate upwards in the last 60 days for fiscal 2024. The Zacks Consensus Estimate has increased $0.03 to $2.82 per share. GMED has an average earnings surprise of 10.8%.

With strong valuation and earnings metrics, a good Zacks Rank, and top-tier Value and VGM Style Scores, investors should strongly think about adding GMED to their portfolios.

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