Seeking Alpha: K2M Gaining On Entrenched Rivals In An Overlooked Space

All of the smaller players that have done well in spine care - NuVasive (NASDAQ:NUVA), Globus (NYSE:GMED), LDR Holding (NASDAQ:LDRH), and K2M (NASDAQ:KTWO) - have done so largely on the basis of being more nimble and more innovative than entrenched competitors like Johnson & Johnson (NYSE:JNJ) and Medtronic (NYSE:MDT). Although the market hasn't been showing a lot of love to the riskier small med-tech names of late, K2M looks like a name for more aggressive investors to investigate.

K2M has established itself as a viable rival in the complex spinal deformity market (scoliosis, trauma and tumor) and has had some success already in transferring its innovative technologies to the minimally invasive (or MIS) and degenerative spine care markets. Although this company needs to work on its margins and may not generate the sort of eye-popping revenue growth that some growth investors demand, I believe the shares look undervalued on the assumption of long-term growth in the low double-digits.

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K2M Gaining On Entrenched Rivals In An Overlooked Space