Trade-Ideas LLC identified

Globus Medical

(

GMED

) as a "dead cat bounce" (down big yesterday but up big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Globus Medical 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 $32.9 million.
  • GMED has traded 256,210 shares today.
  • GMED is up 3.1% today.
  • GMED was down 15.7% yesterday.

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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 22. Currently there are 8 analysts that rate Globus Medical a buy, 1 analyst rates it a sell, and 1 rates it a hold.

The average volume for Globus Medical has been 768,800 shares per day over the past 30 days. Globus Medical has a market cap of $2.5 billion and is part of the health care sector and health services industry. The stock has a beta of 0.46 and a short float of 16.4% with 7.05 days to cover. Shares are down 19.9% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Globus Medical as a

buy

. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, revenue growth, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels and expanding profit margins. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:

  • GLOBUS MEDICAL INC has improved earnings per share by 8.0% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, GLOBUS MEDICAL INC increased its bottom line by earning $1.18 versus $0.97 in the prior year. This year, the market expects an improvement in earnings ($1.20 versus $1.18).
  • Despite its growing revenue, the company underperformed as compared with the industry average of 5.7%. Since the same quarter one year prior, revenues slightly increased by 2.9%. This growth in revenue appears to have trickled down to the company's bottom line, improving 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 6.06, which clearly demonstrates the ability to cover short-term cash needs.
  • The gross profit margin for GLOBUS MEDICAL INC is currently very high, coming in at 81.21%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 18.76% is above that of the industry average.

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