A Sluggish Spine Market Keeping The Pressure On NuVasive

NuVasive (NUVA) is a case in point for a couple of things I've long believed about stocks. First, the process of revising earnings and expectations usually takes multiple quarters. Second, "buy on pullbacks" is actually hard advice to follow, as good companies don't often get all that cheap unless there are some legitimately scary (or at least nerve-wracking) issues going on with the company.

Although NuVasive shares eventually showed a little positive momentum after my last piece, the shares are down about 10% from that level now after another sell-off tied to the company's guidance at a major sell-side industry conference. With a less robust outlook for 2018, I've trimmed back my expectations some, but I still believe the shares are undervalued on the basis of long-term growth in the mid-single-digits. NuVasive has work to do to restore investor confidence, though, so I don't expect a sharp turnaround outside of an unexpected event like a buyout.

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A Sluggish Spine Market Keeping The Pressure On NuVasive