In a market that has been pretty good for med-tech, Globus Medical (GMED) has done even better, harnessing strong share growth in its core spine and trauma businesses to beat expectations and fuel even higher estimates. That, in turn, has driven the shares up another 25% or so since my last update - beating the medical device sector by about five points.
Valuation, not growth or opportunity, remains my hang-up with Globus. The shares trade above what the market has normally been willing to pay for the level of growth Globus is likely to deliver, but it's hard to be too negative on a share-gainer with sizable addressable markets still in front of the business. I have some concerns about a sector-wide rerating taking Globus along with it, but until and unless that happens, these shares should have some appeal to growth investors.
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Globus Medical Continuing To Harness Innovation To Drive Impressive Growth
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