Globus Medical Inc Class A (GMED) Strong On High Relative Volume Today - TheStreet

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified

Globus Medical Inc Class A

(

GMED

) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Globus Medical Inc Class A as such a stock due to the following factors:

  • GMED has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $20.3 million.
  • GMED has traded 207,184 shares today.
  • GMED is trading at 14.22 times the normal volume for the stock at this time of day.
  • GMED is trading at a new high 11.10% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

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More details on GMED:

Globus Medical, Inc., a medical device company, focuses on the design, development, and commercialization of musculoskeletal implants that promote healing in patients with spine disorders. GMED has a PE ratio of 23.6. Currently there are 9 analysts that rate Globus Medical Inc Class A a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Globus Medical Inc Class A has been 753,200 shares per day over the past 30 days. Globus Medical Inc Class A has a market cap of $1.5 billion and is part of the health care sector and health services industry. The stock has a beta of -0.12 and a short float of 8.2% with 6.19 days to cover. Shares are up 3.6% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Globus Medical Inc Class A as a

hold

. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and notable return on equity. However, as a counter to these strengths, we find that the company's profit margins have been poor overall.

Highlights from the ratings report include:

  • GMED's revenue growth has slightly outpaced the industry average of 3.2%. Since the same quarter one year prior, revenues slightly increased by 6.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • GMED has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 5.24, which clearly demonstrates the ability to cover short-term cash needs.
  • GLOBUS MEDICAL INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, GLOBUS MEDICAL INC reported lower earnings of $0.73 versus $0.80 in the prior year. This year, the market expects an improvement in earnings ($0.92 versus $0.73).
  • The gross profit margin for GLOBUS MEDICAL INC is currently very high, coming in at 81.34%. Regardless of GMED's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, GMED's net profit margin of 18.17% compares favorably to the industry average.

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